Post by : Badri Ariffin

The Life Insurance Corporation of India (LIC) announced an impressive consolidated net profit of ₹10,098.48 crore for Q2 of FY26, showcasing a 31% increase from ₹7,728.68 crore during the same period last year. However, this represents a slight decline of 7.8% from ₹10,957.05 crore recorded in Q1FY26.

For the first half of FY26, the net profit surged 16.36% year-on-year, amounting to ₹21,040 crore, highlighting steady operations in a competitive insurance landscape.

Consistent Premium Income Growth

During Q2FY26, LIC’s net premium income reached ₹1,26,930.04 crore, reflecting a 5.5% increase year-over-year and a 6.1% rise since the previous quarter. Over six months, total premium income also grew by 5.14%, totaling ₹2,45,680 crore.

The company has actively diversified its product offerings and distribution methods, significantly increasing the Non-Par APE share for individual policies to 36.31% in H1FY26 from 26.31% last year.

New Business Fuelled by Distribution Channels

Bancassurance and alternative distribution channels have played a pivotal role in driving new business, with individual new business premium shares now at 67.6%. The value of new business (VNB) saw a 12.3% increase to ₹5,111 crore, with a VNB margin of 17.6%.

Enhanced Cost Efficiency

LIC’s expense ratio improved, decreasing by 146 basis points to 11.28%, indicating enhanced operational efficiency.

Growing Asset Base

As of September 30, 2025, total assets under management (AUM) rose to ₹57,22,896 crore, marking a 3.31% increase from ₹55,39,516 crore compared to last year, which underscores the company’s robust investment growth.

Q2FY26 Key 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 exhibit stable growth in both profits and premiums, supported by innovative distribution strategies, solidifying its dominance as India's leading life insurer.

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