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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Police crack whip against inciteful social media posts
Mangaluru (Karnataka) (PTI): Police have registered a case on their own after discovering a series of alarming and provocative posts on Instagram, allegedly aimed at inciting communal hatred, glorifying violence and threatening revenge attacks in the city.
According to the FIR, filed by Police Sub-inspector Anita Nikkam of the Kankanady Town Police Station, the officer who was monitoring social media platforms on December 2 as per the instructions of senior officials, came across multiple Instagram accounts sharing inflammatory content.
The FIR states that posts and stories on 16 Instagram accounts reportedly carried images of unknown individuals brandishing weapons, including pistols, revolvers, swords and machetes, some with their faces masked.
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Police said the posts were crafted to instil fear, provoke violence, create hostility between communities and disrupt public order in Mangaluru.
The FIR states that the content appeared to be part of a larger attempt to incite hatred between religions and communities, encourage unlawful activities, and disturb peace and communal harmony.
The complaint notes that Mangaluru is a 'sensitive region', and that the posts indicated a coordinated attempt to create fear, trigger riots, conspiracies and criminal acts through social media.
Police have initiated action under relevant sections of law and are tracing the individuals behind the Instagram accounts.
Further investigation is under way.
