LIC Q2 profit rises 31% to ₹10,098 cr, premium income grows 5.5%

LIC's assets under management rose to ₹57.22 trillion as of September 30, 2025, up 3.31 per cent year-on-year, supported by higher premium income and cost efficiency gains

State-owned Life Insurance Corporation (LIC) on Thursday reported a consolidated net profit of ₹10,098.48 crore for the second quarter of the financial year 2025–26 (Q2FY26), up 31 per cent from ₹7,728.68 crore in the same quarter last year. Sequentially, profit declined 7.8 per cent from ₹10,957.05 crore.

 

In the first six months of FY26 (H1FY26), LIC’s net profit rose 16.36 per cent year-on-year (Y-o-Y) to ₹21,040 crore.

 

What was LIC’s premium income growth?

The insurer’s net premium income for the quarter stood at ₹1,26,930.04 crore, a 5.5 per cent increase Y-o-Y and a 6.1 per cent rise sequentially. On a half-yearly basis, total premium income grew 5.14 per cent to ₹2,45,680 crore.

 

“From a business perspective, during H1FY26, LIC has once again demonstrated the successful implementation of its strategy pertaining to both product and channel diversification, which we have been pursuing since our listing,” said R Doraiswamy, chief executive officer (CEO) and managing director of LIC.

 

He added that the Non-Par APE (annualised premium equivalent) share of the individual business rose to 36.31 per cent in H1FY26, up from 26.31 per cent in the same period last year.

 

How did LIC’s distribution channels perform?

Doraiswamy said the Banca and Alternate Channels’ share of individual new business premium (NBP) grew by 67.6 per cent. The value of new business (VNB) increased by 12.3 per cent in H1FY26 to ₹5,111 crore, with a VNB margin of 17.6 per cent.

 

LIC’s expense ratio declined by 146 basis points to 11.28 per cent during the same period, reflecting improved cost efficiency.

 

How large is LIC’s asset base now?

LIC’s assets under management (AUM) rose to ₹57,22,896 crore as of September 30, 2025, compared to ₹55,39,516 crore a year earlier, marking a Y-o-Y growth of 3.31 per cent.

 

What are the key highlights of LIC’s Q2 results?

Net premium income: ₹1,26,930.04 crore

Net profit: ₹10,098.48 crore

Earnings per share (basic and diluted): ₹15.97