Life Insurance Corporation of India Reports Strong 31.92% Profit Growth in Q2 FY26

Life Insurance Corporation of India (LIC) has reported a robust year-on-year profit growth of 31.92% in the second quarter of the fiscal year 2026. The company's standalone profit after tax (PAT) surged to Rs 10,053 crore, a significant rise from Rs 7,620 crore in the corresponding quarter of FY25.

Accompanying this profit growth, LIC's Net Premium Income saw a 5.4% increase year-on-year, standing at Rs 1,26,479 crore in Q2 FY26, up from Rs 1,19,900 crore in Q2 FY25.

R Doraiswamy, CEO & MD of LIC, conveyed strong optimism regarding the recent Goods and Services Tax (GST) changes announced by the Government for the insurance sector. He believes these changes are beneficial for customers and will accelerate the growth of the life insurance industry in India, with LIC ensuring all benefits are passed on.

For the first half of FY26 (H1FY26), LIC's total premium income grew by 5.14% year-on-year to Rs 2,45,680 crore. Individual business premium contributed Rs 1,50,715 crore, while group business premium reached Rs 94,965 crore. However, individual new business premiums experienced a slight decline of 3.54% to Rs 28,491 crore. Conversely, renewal premiums in the individual segment showed healthy growth of 6.14%, amounting to Rs 1,22,224 crore.

Impact This news is highly positive for Life Insurance Corporation of India's stock performance, signaling strong operational efficiency and market confidence. The growth in PAT and net premium income suggests effective business strategies. The optimistic outlook on GST changes could further boost investor sentiment and the company's future earnings potential. The sector as a whole may see increased investor interest if such positive trends continue.

Rating: 8/10

Difficult Terms: * **Profit After Tax (PAT)**: The profit a company has left after deducting all expenses, including taxes, from its total revenue. * **Net Premium Income**: The revenue generated by an insurance company from premiums collected, after deducting reinsurance costs. * **Year-on-Year (YoY)**: A comparison of financial data from one period to the same period in the previous year. * **GST**: Goods and Services Tax, a unified indirect tax system in India. The news refers to recent *changes* in GST policies affecting the insurance industry. * **Individual Business Premium**: Premiums collected from policies sold to individual customers. * **Group Business Premium**: Premiums collected from policies sold to groups, such as employers for their employees. * **Renewal Premium**: Premiums paid by policyholders to keep their existing insurance policies active beyond their initial term.