LIC Q2 Results: Net profit jumps 31% to ₹10,098 crore, net premium income up 5.4% YoY

The company's net premium income jumped 5.4% year-on-year (YoY) to ₹126,930 lakh crore during the reporting quarter, rising from ₹120,326 lakh crore in Q2 FY25.

The PSU firm’s first-year premium was at ₹10,884 crore in Q2 FY26 as compared to ₹7,566 crore in Q1 FY26 and Rs 11,245 crore in the year-ago period. In Q2 FY26, the renewal premium stood at ₹65,320 crore, rising sequentially from ₹60,179 crore in Q1 FY26 and ₹62,236 crore YoY.

The single premiums were at ₹50,882 crore, falling from ₹52,008 crore in Q1 FY26. However, it rose from ₹46,997 crore in Q2 FY25.

Its net investment income stood at ₹112,528.25 crore for the reporting quarter, while the solvency ratio was stable at 2.13 as against 1.98 YoY.

“We at LIC are very optimistic about the positive impact of the GST changes announced for the insurance industry by the Government of India during September 2025. It is our firm belief that these changes are in the best interest of customers and will lead to further accelerated growth of the life insurance industry in India. As LIC we have ensured that all intended benefits of GST changes are passed onto the customers,” said R Doraiswamy, CEO and Managing Director of LIC.

LIC's H1 FY25 performance

Profit After Tax (PAT) for the half year ended September 30, 2025, stood at ₹21,040 crore, up 16.36% from ₹18,082 crore recorded in the same period last year.

The total premium income for the six-month period (H1 FY25) was ₹2,45,680 crore as compared to ₹2,33,671 crore in H1 FY24, registering a growth of 5.14%.

For H1 FY25, the individual new business premium income stood at ₹28,491 crore, down 3.54% from ₹29,538 crore in the corresponding period last year. Meanwhile, individual renewal premium income rose 6.14% YoY to ₹1,22,224 crore, compared to ₹1,15,158 crore in the same period of the previous year.

On an Annualised Premium Equivalent (APE) basis, LIC’s total premium for H1 FY25 stood at ₹29,034 crore. Of this, the Individual Business contributed ₹17,170 crore, accounting for 59.14%, while the Group Business contributed ₹11,864 crore, representing 40.86% of the total.

The solvency ratio as of September 30, 2025, increased to 2.13 as against 1.98 in H1 FY24.

Further, the Assets Under Management (AUM) increased to ₹57,22,896 crore in H1 FY25, compared to ₹55,39,516 crore in H1 FY24, registering a year-on-year growth of 3.31%.

The Value of New Business (VNB) for the six months ended September 30, 2025, stood at ₹5,111 crore, up 12.30% from ₹4,551 crore recorded in the same period last year.

“From a business perspective during the first half of this year (FY 2025-26), LIC has once again demonstrated the successful implementation of its strategy pertaining to both product and channel diversification that we have been pursuing since our listing,” said Doraiswamy.

He further added that, “While we expand our overall profitability through a diversified product mix and channel mix, we are also working towards optimising costs, and for H1 FY26 our overall expense ratio has decreased by 146 bps to 11.28%.”

On Thursday, shares of LIC settled at ₹894 apiece on NSE, falling 1.29%. The earnings, however, were announced after the market hours.