LIC Q2 profit rises 20% to ₹12,115 crore as VNB margin and net premium expands
LIC expects further improvement in VNB margins, supported by a favourable product mix and growth in high-margin segments, particularly non-participating (non-par) savings and term assurance.
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Published - November 05, 2026 08:38 pm IST - MUMBAI
The insurer’s value of new business (VNB) jumped 33.95%. | Photo Credit: The Hindu
Life Insurance Corporation of India (LIC) reported a 20% year-on-year (YoY) rise in net profit to ₹12,115 crore for the quarter ended September (Q2FY27), driven by strong premium growth and improved business margins.
Net premium income rose 16.2% to ₹1.47 lakh crore.
Single premium income led the growth, increasing 34.5% to ₹68,425 crore.
Annualised premium equivalent (APE) grew 5.72% to ₹30,696 crore, while expenses declined 1.13% to ₹15,061.5 crore.
The insurer’s value of new business (VNB) jumped 33.95% to ₹6,846 crore.
Consequently, the VNB margin expanded 470 basis points to 22.3%.
Assets under management (AUM) increased 4.16% to ₹59.61 lakh crore.
LIC expects further improvement in VNB margins, supported by a favourable product mix and growth in high-margin segments, particularly non-participating (non-par) savings and term assurance.
Non-par savings accounted for 13% of its business mix, up from 10.7%, registering 35% growth.
Term assurance business expanded 87%.
Favourable movements in the risk-free rate (RFR) also aided margin expansion.
“We launched a new pure-term insurance product in September, which has received a strong response.
In the last few days of September alone, we sold over 58,000 policies under the newly introduced plan,” Managing Director and Chief Executive Officer R Doraiswamy said.
“Going forward, our key focus areas will be pure-term protection products, non-par savings products and the annuity business.”
On the proposed sale of IDBI Bank to Fairfax Financial Holdings, LIC said the bank could continue distributing its insurance products under the open-architecture model, which permits banks to offer products from multiple insurers.
LIC also said it was expanding its bancassurance network, with several banks joining over the past two quarters.
economy, business and finance / insurance / company information / earnings
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