LIC Q2 FY27 Results: Net Profit Rises 20% to ₹12,076 Crore as Premium Income Grows

Life Insurance Corporation of India (LIC) reported a 20.1% year-on-year increase in standalone net profit to ₹12,076.02 crore for the second quarter of FY27, supported by higher premium income and growth in its insurance business. The country’s largest life insurer had reported a net profit of ₹10,053.39 crore in the corresponding quarter of the previous financial year.

LIC’s net premium income increased 16.2% to ₹1,47,018.18 crore during the July-September quarter, compared with ₹1,26,479.26 crore a year earlier. Total income also increased to ₹2,62,739 crore from ₹2,39,614 crore. The results point to continued growth in LIC’s premium collections, although the performance varied across individual premium categories.

LIC Q2 FY27 Results: Key Financial Highlights

LIC’s September-quarter performance reflected higher premium collections and improved profitability. Its profit before tax also increased, while investment income from policyholders’ funds remained an important contributor to the insurer’s overall financial performance.

Financial metric	Q2 FY27	Q2 FY26
Standalone net profit	₹12,076.02 crore	₹10,053.39 crore
Net premium income	₹1,47,018.18 crore	₹1,26,479.26 crore
Total income	₹2,62,739 crore	₹2,39,614 crore
Profit before tax	₹12,125.82 crore	₹10,146.97 crore
Net investment income from policyholders’ funds	₹1,14,983.77 crore	₹1,12,147.16 crore

Net profit increased approximately 20.1%, while net premium income grew 16.2%. Total income rose by around 9.7%, indicating that the improvement extended beyond premium collections.

However, LIC’s quarterly net profit declined 10.5% sequentially from ₹13,492.03 crore in Q1 FY27. Net premium income, on the other hand, increased 15.5% compared with the preceding quarter.

This difference shows why year-on-year and quarter-on-quarter comparisons provide different perspectives on the company’s performance.

Premium Income Growth Supports LIC’s Performance

Premium income is one of the most important indicators for a life insurance company because it reflects the money collected from policyholders for insurance coverage and related products.

LIC’s net premium income increased to ₹1.47 lakh crore in Q2 FY27, supported by growth in single-premium and renewal-premium collections.

Renewal premiums increased 5.2% to ₹68,375 crore from ₹64,996 crore in the year-ago quarter. These payments come from existing policyholders who continue their insurance coverage by paying premiums when they become due.

However, first-year premium income declined 3.7% to ₹10,432 crore from ₹10,836 crore.

Single-premium income from new policies increased approximately 35%, providing an important boost to overall premium collections.

The difference between these categories is significant. Renewal premiums indicate the ability to retain existing policyholders, while first-year premiums provide an indication of new business acquisition. Single-premium products can generate substantial collections upfront, but they do not necessarily create the same recurring premium stream as regular-payment policies.

For LIC, maintaining growth across both new business and renewal collections will remain important for long-term premium expansion.

LIC’s First-Half FY27 Profit Increases 21.5%

LIC also reported strong cumulative financial performance during the first six months of FY27.

Standalone net profit for April-September 2026 increased 21.5% to ₹25,568.05 crore, compared with ₹21,039.90 crore during the corresponding period last year.

Total premium income increased 11.6% to ₹2,74,269 crore, reflecting growth in both individual and group insurance businesses.

H1 FY27 performance	Reported figure
Net profit	₹25,568.05 crore
Total premium income	₹2,74,269 crore
Individual new business premium income	₹32,725 crore
Group business premium income	₹1,13,594 crore

Individual new business premium income increased 14.9%, while group business premium income grew 19.6%.

The figures suggest that group insurance contributed meaningfully to LIC’s premium growth during the first half. Group insurance typically covers members of an organisation or institution under a common insurance arrangement, including employer-linked and other group policies.

Growth in this segment can help insurers collect premiums across large customer groups, although the business mix and profitability of individual products remain important.

Value of New Business Margin Improves

One of the important indicators for evaluating a life insurer is its Value of New Business (VNB).

VNB estimates the expected future profit from insurance policies sold during a particular period. Unlike total premium collections, it focuses on the economic value created by new business.

LIC’s VNB increased 34% to ₹6,846 crore during the first half of FY27, compared with ₹5,111 crore in the corresponding period last year.

Its net VNB margin improved to 22.3% from 17.6%, representing an expansion of 470 basis points.

This improvement indicates that the expected profitability of newly sold policies increased relative to the premiums generated by that business.

The VNB margin is particularly relevant as LIC works to strengthen the contribution of individual protection and other higher-value insurance products. A higher margin can improve the quality of growth, rather than relying only on increasing the volume of premiums collected.

Expense Ratio and Assets Under Management

LIC also reported an improvement in its expense ratio, which declined to 10.41% from 11.28%.

The expense ratio measures operating expenses in relation to the relevant premium or income base. A lower ratio can indicate improved cost efficiency, although it should be considered alongside distribution expenses, business mix and the company’s accounting disclosures.

The insurer’s assets under management increased 4.2% to ₹59.61 lakh crore. AUM represents the investments and other assets managed by LIC, primarily to support its obligations to policyholders.

Its solvency ratio improved to 2.35 from 2.13. The solvency ratio measures an insurer’s financial capacity to meet its policyholder obligations relative to the regulatory capital requirement. A higher ratio generally indicates a stronger capital buffer.

LIC retained a 58.77% share of India’s first-year premium income during the first half of FY27, according to the reported figures.

However, the number of individual policies sold declined 2.25% to 70.97 lakh. This suggests that premium growth and policy-count growth are not necessarily moving in the same direction. Changes in average policy size and product mix can influence premium collections even when the number of policies changes differently.

LIC to Adopt Indian Accounting Standards From April 2027

LIC has also received regulatory approval to defer its transition to Indian Accounting Standards (Ind AS) by one year. The insurer plans to adopt the accounting framework from April 1, 2027.

The transition is important because insurance companies have specialised accounting requirements involving long-term policy liabilities, actuarial assumptions, investment assets and expected future obligations.

Adopting Ind AS will change aspects of how LIC presents and reports its financial information. Investors will need to pay attention to the transition disclosures when comparing financial performance across reporting periods.

The company also appointed Naga Nalini Kalluri as its Chief Compliance Officer, effective November 6, 2026.

The Bigger Picture

LIC’s Q2 FY27 results demonstrate that premium growth remains an important driver of its financial performance. Higher single-premium collections, stronger group insurance income and an improvement in VNB margins supported the insurer’s first-half performance.

At the same time, the decline in first-year premium income during the September quarter and the reduction in individual policy sales show that growth is not uniform across every part of the business.

The Indian life insurance industry is also facing changing customer preferences, rising distribution costs and potential regulatory changes involving insurance commissions. These developments could influence how insurers price products, manage distribution networks and improve profitability.

Looking Ahead

LIC’s performance during the second half of FY27 will depend on its ability to sustain premium collections, expand individual new business and retain existing policyholders. The improvement in VNB margins and solvency provides useful indicators of business quality and financial strength, but the insurer will need to maintain these trends while managing operating costs and changes in the regulatory environment.

The transition to Ind AS from April 2027 will also be an important development for investors tracking LIC’s financial performance. Its scale, distribution network and market position remain significant advantages, while future growth will increasingly depend on product mix, customer acquisition, policy persistency and the profitability of new business.