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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Inappropriate for MLAs seeking free IPL tickets, says D.K. Suresh
Bengaluru: Bengaluru Milk Union Ltd President D.K. Suresh on Monday said it is inappropriate for MLAs to seek free IPL tickets, adding that those interested in watching matches should pay for them personally.
Speaking to reporters near his residence in Sadashivanagar, he said, “IPL is a commercial tournament and does not represent the country. It is not right for public representatives to focus too much on such matters.”
Referring to the recent controversy during the RCB celebrations, he said, “let us find out who benefited the most from the statements made during the incident.” He also pointed out that BJP MLAs had received IPL tickets as well.
Responding to discussions about relocating the Chinnaswamy Stadium, Suresh said the government has already approved the construction of a new stadium at a location he had proposed.
“I had suggested building a stadium in Surya City and submitted a proposal for it. Bengaluru needs four stadiums in four directions to cater to its growing population and encourage youth participation in sports,” he said.
He noted that apart from Kanteerava Stadium, KSCA, and the Football Stadium, there are limited facilities in the city.
“When I was a Lok Sabha member, I had proposed allocating 100 acres in my constituency at Surya City. The land was later earmarked and the plan approved,” he added.
Suresh said he has discussed the project with Minister Zameer Ahmed Khan, Rajiv Gandhi Housing Corporation Chairman Shivalingegowda, and Anekal MLA Shivanna.
“The Cabinet has now approved the project, and a stadium will be developed on around 50–60 acres,” he said.
He further added that he has requested the Deputy Chief Minister to build another stadium at Shivarama Karanth Layout through the BDA, where 40 acres have been allocated. Plans are also being discussed to develop a well-equipped stadium in Bidadi.
Commending state government's recent bilingual policy move, Suresh said forcing children to learn three languages could affect their comprehension.
“It is a good decision to make two languages compulsory. Learning a third language should be left to the choice of students and parents,” he said.
Responding to criticism from BJP leaders, he said their tendency is to oppose every decision of the government.
“To please their central leadership, they take a pro-Hindi stance. Instead, they should advocate for the adoption of Kannada in all states,” he said.
When asked about the earlier three-language policy under Congress, he said, “the situation is different now. Today, the focus should be on quality learning. Kannada should remain the primary language, while students and parents can choose an additional language.”
