R Doraiswamy, CEO and MD, LIC
The Net VNB margin for the six months period ended September 30th, 2025 increased by 140 bps to 17.6% as compared to 16.2% for the six months period ended September 30th, 2024.
New Delhi: Life Insurance Corporation of India (LIC) on Thursday reported a robust 32 per cent increase in standalone net profit to Rs 10,053.39 crore for the second quarter of the current financial year, compared with the corresponding figure of Rs 7,620.86 crore in the same period of the previous financial year.
LIC’s net premium income grew 5.5 per cent year-on-year to Rs 1.26 lakh crore during the July-September quarter from 1.2 lakh crore in the same period last year while the solvency ratio increased to 2.13 per cent from 1.98 per cent in the year-ago period.
The Value of New Business (VNB) for the six months period ended September 30th, 2025 was Rs. 5,111 crore as compared to Rs. 4,551 crore for the six months period ended September 30th, 2024, registering a growth of 12.30%.
The Net VNB margin for the six months period ended September 30th, 2025 increased by 140 bps to 17.6% as compared to 16.2% for the six months period ended September 30th, 2024.
The Indian Embedded Value (IEV) as on September 30th,2025 has been determined as Rs. 8,13,230 crore as compared to Rs. 8,21,716 crore as on September 30th, 2024 registering a decrease of 1.03% over the previous year.
The Solvency Ratio as on September 30th, 2025 increased to 2.13 as against 1.98 on September 30th, 2024.
R Doraiswamy, CEO and MD of LIC, said that the company is very optimistic about the positive impact of the GST changes announced for the Insurance Industry by the Government.
“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.” Doraiswamy added.
“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. While we expand our overall profitability through diversified product mix and channel mix, we are also working towards optimizing costs and for H1 FY26 our overall expense ratio has decreased by 146 bps to 11.28%.,” said LIC chief.
The Banca and Alternate Channels share of Individual new business premium (NBP) is now 7.12% for H1 FY26 as compared to 4.10% last year, demonstrating a growth of 67.62%.
The Assets Under Management (AUM) increased to Rs. 57,22,896 crore as on September 30th, 2025 as compared to Rs. 55,39,516 crore on September 30th, 2024 registering an increase of 3.31% year on year.
The Overall Expense Ratio for the six months period ended September 30th, 2025 decreased by 146 bps to 11.28% as compared to 12.74% for the six months period endedSeptember 30th 2024.
The Yield on Investments on policyholders funds excluding unrealized gains was 8.90% for the six months period ended September 30th, 2025 as against 9.02% for six months period ended September 30th, 2024
The asset quality for policyholders’ funds also improved during the quarter as NPA fell to Rs 3.94 per cent from Rs 6.17 per cent in Q2 FY25.
In the first six months of FY26 (H1FY26), LIC’s net profit amounted to Rs 21,040 crore, marking a 16.36 per cent increase year-on-year (Y-o-Y).
The company statement noted that LIC’s total premium income for the six months (H1FY26) rose 5.14 per cent year-on-year to Rs 2,45,680 crore. Individual business premium increased to Rs 1,50,715 crore, while group business premium rose to Rs 94,965 crore.
The company’s renewal premium in the individual segment grew 6.14 per cent to Rs 1,22,224 crore.
The Solvency Ratio as on September 30th, 2025 increased to 2.13 as against 1.98 on
September 30th, 2024.
For the six months period ended September 30th, 2025, the persistency ratios on
premium basis for the 13th month and 61st month were 75.29% and 63.81%, respectively.
The comparable persistency ratios for the corresponding period ended September 30th, 2024 were 77.62% and 61.46%, respectively.
For the six months period ended September 30th, 2025, the persistency ratios on number of policies basis for the 13th month and 61st month were 63.36% and 51.50%, respectively.
The comparable persistency ratios for the corresponding period ended September 30th, 2024 were 67.23% and 48.92%, respectively.
The Overall Expense Ratio for the six months period ended September 30th, 2025
decreased by 146 bps to 11.28% as compared to 12.74% for the six months period endedSeptember 30th 2024.
The Yield on Investments on policyholders funds excluding unrealized gains was 8.90%
for the six months period ended September 30th, 2025 as against 9.02% for six months
period ended September 30th, 2024.