LIC's strong H2FY26 growth outlook likely to trigger stock rerating

LIC reported a 5% rise in premium income and 12% growth in VNB for Q2FY26. With non-par policy growth and improved margins, analysts see room for a positive rerating

Life Insurance Corporation of India (LIC) had a positive surprise on annual premium equivalent (APE) growth (up 3 per cent year-on-year or Y-o-Y), with group business up 20 per cent. Value of new business (VNB) grew 12 per cent. 

The product mix has improved with higher sum-assured and non-participating or non-PAR policies aligned with new surrender guidelines. In Q2FY26, LIC reported net premium income of ₹1.3 trillion, up 5 per cent. 

Renewal premium grew 5 per cent to ₹65,000 crore and single premium grew 8 per cent to ₹50,800 crore. First-year premium declined 3 per cent to ₹10,800 crore. New