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Life Insurance Corporation of India (LIC) reported a 20.12% year-on-year rise in net profit to ₹12,076 crore in Q2 FY27, driven by a 16.2% surge in net premium income to ₹1.47 trillion, according to Business Standard.

LIC Q2 Net Profit Rises 20% to ₹12,076 Crore

LIC’s Q2 FY27 net profit climbed 20.12% YoY to ₹12,076 crore, fueled by a 16.2% YoY increase in net premium income to ₹1.47 trillion. Assets under management (AUM) expanded 4.16% to ₹59.60 trillion as of September 30, 2026. The insurer’s annualised premium equivalent (APE) rose 3.8% to ₹17,004 crore, with first-half FY27 APE up 5.72% to ₹30,696 crore. Value of new business (VNB) grew 17.14% YoY to ₹3,710 crore, while the VNB margin improved to 21.82% from 19.33%. Net investment income increased 2.5% to ₹1.15 trillion, with a yield on investments of 9.04%.

The strategic shift toward protection products and annuities, alongside bancassurance expansion with IDBI Bank, positions LIC to capitalize on regulatory changes and evolving customer preferences. The 58.77% share of first-year premium income underscores its market dominance. However, the decline in non-participating (non-par) products signals a long-term shift in product mix.

Direct stakeholders, including investors, customers, and regulators, benefit from improved profitability and compliance with Irdai’s regulatory changes. Competitors and banking partners like IDBI Bank face intensified competition and growth opportunities from LIC’s market leadership. The management emphasized maintaining focus on protection products despite potential ULIP sales pressure.

LIC’s resilience in a competitive market highlights its operational efficiency, but the long-term success of its shift from ULIPs to savings and annuities remains uncertain, as noted in the BottomLine.

LIC expects IDBI Bank to continue as a distribution partner despite its proposed sale to Fairfax Financial Holdings. The insurer remains optimistic about Irdai’s regulatory changes for the insurance industry, which it believes will accelerate growth.

LIC’s strong Q2 FY27 results reflect robust financial performance and strategic realignment toward protection products, but the long-term success of its shift from ULIPs to savings and annuities remains uncertain.

Topics: Insurance, Financial Services, Life Insurance, Regulatory Changes, Bancassurance, Protection Products, AUM Growth, Premium Income

#LICPerformance #InsuranceSector #Bancassurance #ProtectionProducts #AUMGrowth #IrdaiRegulation

Source: Business Standard