LIC net profit jumps 20% YoY to Rs 12,076 crore on higher premiums

Mumbai: Life Insurance Corp of India (LIC) reported a 20% year-on-year increase in standalone net profit to ₹12,076 crore for the September quarter, broadly in line with Bloomberg's estimate of ₹12,115 crore, as higher premium income supported growth.

The insurer had reported a net profit of ₹10,053 crore in the year-earlier quarter. Net premium income rose 16.2% to ₹1.47 lakh crore, while net investment income increased to ₹1.15 lakh crore from ₹1.12 lakh crore.

A surge in bond yields through the quarter and a retreat in equities through the latter half of September dented investment returns at LIC, crimping profit growth at the country's biggest institutional investor.


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"The MTM losses because of the market are the ones which have contributed much to the reduction. Otherwise, on the business component, it is much better," said Ajay Kumar Srivastava, executive director and appointed actuary at LIC. The embedded value had, however, increased about 1% since March, he said.

For the first half of FY27, LIC's net profit rose 21.5% to ₹25,568 crore, while total premium income increased 11.64% to ₹2.74 lakh crore.

Individual business annualised premium equivalent (APE) was almost flat at ₹17,224 crore in the first half, rising 0.31% year on year, while the number of individual policies sold declined 2.25% to 70.97 lakh. The share of non-participating products in individual APE moderated to 34.03% from 36.31% a year earlier.

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The insurer's value of new business (VNB) grew 33.95% to ₹6,846 crore in H1 FY27, while its VNB margin expanded 470 bps to 22.3%, reflecting higher margins across product categories and a shift in business mix.

LIC's Indian Embedded Value stood at ₹7.97 lakh crore at the end of September, down 1.95% from a year earlier. Management attributed the decline largely to mark-to-market losses arising from equity market fluctuations, given the insurer's sizeable participating business portfolio.