LIC Q2 profit rises 20% to ₹12,115 crore as VNB margin and net premium expands

The insurer’s value of new business (VNB) jumped 33.95%. | Photo Credit: The Hindu Life Insurance Corporation of India (LIC) reported a 20% year-on-year (YoY) rise in net profit to ₹12,115 crore for the quarter ended September (Q2FY27), driven by strong premium growth and improved business margins.Net premium income rose 16.2% to ₹1.47 lakh crore. Single premium income led the growth, increasing 34.5% to ₹68,425 crore. Annualised premium equivalent (APE) grew 5.72% to ₹30,696 crore, while expenses declined 1.13% to ₹15,061.5 crore.The insurer’s value of new business (VNB) jumped 33.95% to ₹6,846 crore. Consequently, the VNB margin expanded 470 basis points to 22.3%. Assets under management (AUM) increased 4.16% to ₹59.61 lakh crore.LIC expects further improvement in VNB margins, supported by a favourable product mix and growth in high-margin segments, particularly non-participating (non-par) savings and term assurance. Non-par savings accounted for 13% of its business mix, up from 10.7%, registering 35% growth. Term assurance business expanded 87%. Favourable movements in the risk-free rate (RFR) also aided margin expansion.“We launched a new pure-term insurance product in September, which has received a strong response. In the last few days of September alone, we sold over 58,000 policies under the newly introduced plan,” Managing Director and Chief Executive Officer R Doraiswamy said. “Going forward, our key focus areas will be pure-term protection products, non-par savings products and the annuity business.”On the proposed sale of IDBI Bank to Fairfax Financial Holdings, LIC said the bank could continue distributing its insurance products under the open-architecture model, which permits banks to offer products from multiple insurers.LIC also said it was expanding its bancassurance network, with several banks joining over the past two quarters. Published - November 05, 2026 08:38 pm IST