LIC Q2 Profit Soars 31%, Premium Income Steady Growth

Life Insurance Corporation of India (LIC) posted a robust consolidated net profit of ₹10,098.48 crore for the second quarter of FY26, marking a 31% rise from ₹7,728.68 crore in the same period last year. On a sequential basis, the profit saw a modest decline of 7.8% from ₹10,957.05 crore in Q1FY26.

In the first half of FY26, LIC’s net profit rose 16.36% year-on-year to ₹21,040 crore, reflecting steady performance amid a growing insurance market.

Premium Income Shows Consistent Growth

LIC’s net premium income for Q2FY26 reached ₹1,26,930.04 crore, up 5.5% from a year ago and a 6.1% rise sequentially. On a half-year basis, total premium collection grew 5.14% to ₹2,45,680 crore.

The insurer has been diversifying its product portfolio and distribution channels, resulting in a notable increase in the Non-Par APE share for individual policies, which rose to 36.31% in H1FY26 from 26.31% a year earlier.

Distribution Channels Drive New Business

Bancassurance and alternate channels contributed significantly to new business growth, with their share of individual new business premium rising 67.6%. The value of new business (VNB) increased 12.3% to ₹5,111 crore, supported by a VNB margin of 17.6%.

Cost Efficiency Improves

LIC’s expense ratio declined 146 basis points to 11.28%, reflecting better operational efficiency.

Asset Base Expands

Assets under management (AUM) grew to ₹57,22,896 crore as of September 30, 2025, up 3.31% from ₹55,39,516 crore a year earlier, showing steady growth in the company’s investment base.

Key Q2FY26 Highlights:

• Net Premium Income: ₹1,26,930.04 crore

• Net Profit: ₹10,098.48 crore

• Earnings per Share (Basic & Diluted): ₹15.97

LIC continues to demonstrate stable growth in profits and premiums, backed by diversified channels and product strategy, reinforcing its position as India’s largest life insurer.