Post by : Bianca
Haleem
Life Insurance Corporation of India (LIC) has announced a substantial consolidated net profit of ₹10,098.48 crore for the second quarter of FY26, representing a notable 31% increase from ₹7,728.68 crore during the same quarter last year. However, there was a slight sequential drop of 7.8% from ₹10,957.05 crore recorded in Q1FY26.
During the first half of FY26, LIC's net profit showcased a growth of 16.36% year-on-year, reaching ₹21,040 crore and displaying resilient performance in the expanding insurance sector.
Steady Growth in Premium Income
The net premium income for Q2FY26 reached ₹1,26,930.04 crore, representing a 5.5% increase compared to the previous year and a 6.1% rise sequentially. For the half-year, the total premium collection rose by 5.14% to ₹2,45,680 crore.
LIC is actively diversifying its product offerings and distribution methods, leading to a significant increase in the Non-Par APE share for individual policies, which climbed to 36.31% in H1FY26 from 26.31% last year.
Growth Driven by Distribution Channels
The bancassurance model and alternate distribution channels have notably contributed to the growth of new business, with their share of individual new business premiums reaching 67.6%. The Value of New Business (VNB) rose by 12.3% to ₹5,111 crore, bolstered by a VNB margin of 17.6%.
Improved Cost Efficiency
LIC's expense ratio improved, decreasing by 146 basis points to 11.28% as a result of enhanced operational efficiencies.
Expanding Asset Base
As of September 30, 2025, assets under management (AUM) grew to ₹57,22,896 crore, marking a 3.31% increase from ₹55,39,516 crore a year earlier, demonstrating consistent growth in the company’s investment base.
Highlights from Q2FY26:
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Net Premium Income: ₹1,26,930.04 crore
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Net Profit: ₹10,098.48 crore
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Earnings per Share (Basic & Diluted): ₹15.97
LIC continues to achieve stable profit and premium growth, emphasizing its diversified channel strategies which reinforce its dominance as India’s leading life insurer.
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