MUMBAI–Life Insurance Corporation of India (LIC), the country’s largest life insurer, reported a 20% increase in consolidated net profit for the second quarter of fiscal 2027, supported by higher premium collections and an improvement in asset quality.
The state-owned insurance company posted a consolidated net profit of Rs 12,115 crore for the quarter ended September 2026, compared with Rs 10,098 crore in the corresponding period a year earlier, according to a regulatory filing Thursday.
LIC’s net premium income increased 16.2% year over year to approximately Rs 1.47 lakh crore, up from Rs 1.27 lakh crore in the second quarter of fiscal 2026.
The increase reflected continued growth in the insurer’s premium collections during the quarter.
The company also reported an improvement in asset quality, with its gross nonperforming asset (GNPA) ratio declining to 1.16% from 1.21% in the preceding quarter.
The lower GNPA ratio indicates a reduction in the proportion of problem assets within the insurer’s investment portfolio.
LIC’s latest earnings followed a strong performance in the first quarter of fiscal 2027, when the company reported a 22.8% increase in net profit to Rs 13,492 crore.
During that quarter, net premium income rose 7% year over year to Rs 1.27 lakh crore, while other income increased to Rs 635 crore from Rs 130 crore in the corresponding period of the previous year.
The insurer also reported substantial growth in the profitability of its new insurance business during the first quarter.
LIC’s Value of New Business (VNB), a measure of the expected profitability of newly issued insurance policies, increased 61% to Rs 3,136 crore compared with the same period a year earlier.
Its VNB margin expanded by 750 basis points to 22.9%, up from 15.4% in the corresponding quarter of fiscal 2026.
The improvement indicated stronger expected profitability from new policies written during the period.
The second-quarter results extend LIC’s earnings growth, with higher premium income and improved asset quality contributing to its financial performance.
As India’s largest life insurance provider, LIC maintains an extensive presence in the country’s insurance market, serving policyholders through its nationwide distribution network.
The latest financial results reflect continued growth in the insurer’s core premium business, alongside improvements in key financial indicators. (Source: IANS)
