Life Insurance Corporation of India (LIC) reported a 20.12% year-on-year (YoY) increase in standalone net profit to ₹12,076.02 crore for the second quarter of FY27, compared with ₹10,053 crore in the corresponding quarter of the previous financial year.
The state-owned insurer’s net premium income increased 16.2% YoY to ₹1,47,018.18 crore in Q2 FY27, against ₹1,26,479 crore in Q2 FY26. The growth in profitability was supported by higher premium income and improved performance in the company’s new business segment.
LIC’s total income stood at ₹2,62,739.27 crore during the September quarter, compared with ₹2,39,614 crore in the year-ago period.
LIC Q2 Results : Premium Income and Business Performance
LIC recorded growth across key premium income categories during the quarter. Renewal premium increased to ₹68,375 crore from ₹64,996 crore in Q2 FY26, while single premium income also registered strong growth.
However, first-year premium income declined to ₹10,432 crore from ₹10,836 crore in the corresponding quarter last year.
The company’s Annualised Premium Equivalent (APE), an important measure of new business sales, increased 3.8% YoY to ₹17,004 crore in Q2 FY27, compared with ₹16,382 crore in Q2 FY26.
Group business APE grew 16.5%, while individual business APE declined 4.1%, indicating stronger momentum in the group insurance segment during the quarter.
LIC Value of New Business Increases 17.14%
LIC’s Value of New Business (VNB) increased 17.14% YoY to ₹3,710 crore in Q2 FY27. VNB represents the expected future profits from new insurance policies sold during a particular period.
The net VNB margin improved to 21.82% from 19.33% in the corresponding quarter of the previous year, indicating better profitability from newly written business.
The improvement in VNB and margins reflects the company’s focus on product mix and higher-margin insurance offerings.
LIC Assets Under Management Reach ₹59.60 Lakh Crore
LIC’s assets under management (AUM) stood at ₹59.60 lakh crore as of September 30, 2026, compared with ₹57.23 lakh crore a year earlier, registering growth of 4.16%.
The insurer’s solvency ratio improved to 2.35 as of September 2026, compared with 2.13 in the year-ago period. The ratio indicates the company’s ability to meet its policyholder obligations.
The expenses of management ratio also improved to 10.26% from 12.05% in Q2 FY26, reflecting a reduction in the proportion of expenses relative to premium income.
LIC H1 FY27 Performance
For the first half of FY27, LIC reported standalone profit after tax of ₹25,568.05 crore, registering growth of 21.52% compared with ₹21,040 crore in H1 FY26.
The company’s total premium income increased 11.64% to ₹2,74,269 crore during the six-month period. Its Value of New Business rose 33.95% to ₹6,846 crore, while the VNB margin improved to 22.3%, an expansion of approximately 470 basis points.
The company’s Annualised Premium Equivalent for H1 FY27 increased 5.72% YoY to ₹30,696 crore.
LIC Q2 Results : Key Financial Highlights
- Standalone net profit: ₹12,076.02 crore, up 20.12% YoY.
- Net premium income: ₹1,47,018.18 crore, up 16.2% YoY.
- Total income: ₹2,62,739.27 crore.
- Renewal premium: ₹68,375 crore, compared with ₹64,996 crore a year ago.
- First-year premium: ₹10,432 crore, compared with ₹10,836 crore a year ago.
- Value of New Business: ₹3,710 crore, up 17.14% YoY.
- Net VNB margin: 21.82%, compared with 19.33%.
- Assets under management: ₹59.60 lakh crore, up 4.16% YoY.
- Solvency ratio: 2.35.
LIC’s Business Outlook
LIC is placing greater emphasis on protection products, non-participating savings products and annuity business. The company has also highlighted the potential of its new pure-term insurance product and continued development of its distribution network.
The quarter’s performance indicates that growth in group insurance and renewal premiums supported overall business performance. However, the decline in individual business APE and first-year premium income remains an area to monitor in the coming quarters.
Overall, LIC reported double-digit growth in net profit and premium income in Q2 FY27, alongside an improvement in VNB and its margin.
Source: Life Insurance Corporation of India, unaudited financial results for the quarter and half-year ended September 30, 2026, and H1 FY27 performance update filed on November 5, 2026.
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