LIC profit soars 16.36% to Rs. 21,040 Cr in H1 FY26; VNB margin expands to 17.6%
Mumbai: The Life Insurance Corporation of India (LIC) has announced a robust 16.36% increase in its Profit After Tax (PAT) for the first half of the 2026 fiscal year.
The state-owned insurer reported a PAT of Rs. 21,040 crore for the six months ending September 30, 2025, up from Rs. 18,082 crore during the same period last year.
The strong performance was supported by a 12.30% growth in the Value of New Business (VNB), which reached Rs. 5,111 crore. The company's net VNB margin also expanded by 140 basis points, rising to 17.6% from 16.2% in the previous year.
LIC's total premium income saw a 5.14% rise, reaching Rs. 2,45,680 crore for H1 FY26. Its Assets Under Management (AUM) also grew by 3.31% year-on-year to Rs. 57.23 lakh crore.
A key driver of profitability appears to be the corporation's strategic diversification into non-participating (non-par) products. The Annualized Premium Equivalent (APE) from individual non-par products surged by 30.47% to Rs. 6,234 crore. This shift increased the non-par share within the individual business to 36.31% for the half-year, a significant jump from 26.31% in the previous year.
Despite the strong profit growth, LIC reported a 20.83% decrease in the total number of individual policies sold, which fell to 72.61 lakh from 91.70 lakh in the prior year. The Individual New Business Premium income also saw a 3.54% decline.
However, this was offset by a 6.14% increase in Individual Renewal Premium, which grew to Rs. 1,22,224 crore, and a 6.73% rise in Total Group Business Premium. LIC maintains its position as the market leader with an overall market share of 59.41% based on First Year Premium Income (FYPI).
CEO Outlook and Operational Efficiency
LIC also demonstrated improved operational efficiency, with its overall expense ratio decreasing by 146 basis points to 11.28% for the half-year.
Shri R Doraiswamy, CEO & MD of LIC, attributed the results to the successful implementation of the company's strategy regarding product and channel diversification.
"While we have seen the VNB increase by 12.30% in H1 FY26 to Rs 5,111 crore, our VNB margin has also expanded by 140 bps to 17.6% in H1 FY26," Doraiswamy stated.
He also highlighted growth in alternate sales channels, noting that the "Banca and Alternate Channels share of Individual NBP is now 7.12% for H1 FY26 as compared to 4.10% last year, demonstrating a growth of 67.62%". The CEO expressed optimism about recent GST changes for the industry and reaffirmed LIC's commitment to achieving "Insurance for All by 2047".
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K'taka remains central to Aequs' strategy, says min Patil amid row over firm's investment in TN
Bengaluru (PTI): Karnataka Commerce and Industries Minister M B Patil on Monday asserted that Aequs continues to expand in the state and that its proposed investment in neighbouring Tamil Nadu was a business decision aimed at diversification, not a shift away from Karnataka.
Reacting to criticism on social media over reports that the Karnataka-based firm had signed a major investment deal in Tamil Nadu's Krishnagiri district for setting up a specialised aerospace and defense manufacturing cluster, he said the state government was fully aware of the company's plans and remained confident about its long-term commitment to Karnataka.
"While we welcome every major investment in India, would like to clarify a few points," Patil said in a post on 'X'.
Aequs was significantly expanding its footprint within Karnataka, including a Rs 3,000 crore investment in Kolar for electronics manufacturing.
"Its recently approved Rs 1,500 crore ECMS project will also be grounded in the state. Karnataka remains central to its long-term strategy," he said.
Patil added that the government had prior knowledge of the TN proposal.
The government was already informed and aware that the TN investment is a business decision aimed at geographic diversification and de-risking operations, not a shift away from Karnataka.
"Healthy competition between states strengthens India's manufacturing ecosystem," he said.
Emphasising the state's focus on high-technology sectors, Patil said, "We remain committed to deepening Karnataka's leadership in aerospace and advanced manufacturing, and our engagement with industry partners is strong and ongoing."
The Aequs Group has pledged Rs 4,000 crore to bolster Tamil Nadu's aerospace manufacturing capabilities at the SIPCOT-Shoolagiri Industrial Park in Krishnagiri district.
The group proposes to establish a specialised aerospace and defense manufacturing cluster for the production of aircraft engines, gearbox components, and precision engineering parts. This initiative is expected to provide employment to 7,000 individuals.
