Archive · 7 Nov 2025
LIC Posts 32% Profit Surge in Q2 FY26 Amidst Market Share Dip
LIC, a large government insurance company in India, announced its profits for the period from July to September 2025.
They made a lot more money this year, with their profit jumping by 32% compared to the same time last year.
This increase in profit happened partly because they paid less in commissions to their agents.
Their income from selling new insurance policies also grew.
However, the company's share of the total insurance market went down a little, falling below 60%.
The CEO said they are not too worried about this and are focusing more on making sure their business is profitable.
A recent change in taxes, where some insurance was made cheaper by removing the Goods and Services Tax (GST), is expected to help the company sell more policies in the future.
Even with these tax changes, LIC has passed on the savings to customers and is trying to manage any extra costs.
LIC reported a 32% year-on-year increase in net profit to Rs 10,053 crore for the second quarter ended September 30, 2025.
Net premium income rose to Rs 126,479 crore in Q2 FY26 from Rs 119,901 crore in the same period last year.
The company's overall market share for the half-year ended September 30, 2025, fell to 59.41% from 61.07% a year prior.
First-year premium declined to Rs 10,836 crore in Q2 FY26, despite the GST exemption on individual life insurance premiums.
LIC's solvency ratio improved to 213% in Q2 FY26, and the company expects the GST changes to drive future growth.
- Who
- Life Insurance Corporation of India (LIC)
- What
- Reported a 32% year-on-year increase in net profit for Q2 FY26 to Rs 10,053 crore, driven by lower commission outgo and higher premium income, while overall market share dipped below 60%.
- When
- Second quarter ended September 30, 2025 (reported on Thursday).
- Where
- India
- Why
- Profit increase attributed to moderated commission outgo and revenue growth. Market share decline attributed to product mix changes and GST restructuring, with a strategic focus on profitability over market share.
LIC's Q2 FY26 Performance
Concerns and Strategic Adjustments
Market Share
LIC's Q2 FY26 Performance
Overall market share for the half-year ended September 30, 2025, dipped to 59.41% from 61.07% in the previous year.
Concerns and Strategic Adjustments
LIC's CEO stated the focus is on profitability and margin growth rather than solely market share, attributing the dip to product mix changes and recent GST restructuring.
First Year Premium
LIC's Q2 FY26 Performance
First-year premium fell to ₹10,836 crore from ₹11,201 crore in the same period last year.
Concerns and Strategic Adjustments
The decline occurred despite a government exemption of individual life insurance premiums from the 18% GST effective September 22, with the company optimistic about future growth due to these changes.
GST Impact on Costs
LIC's Q2 FY26 Performance
LIC has passed on the full GST benefits to customers and will not transfer the loss of input tax credit (ITC) burden to agents.
Concerns and Strategic Adjustments
The new GST framework leads to higher distribution costs for insurers as ITC benefits apply to premiums but not commissions and management expenses, though LIC believes higher business volumes will offset this.
- Consolidated Net Profit (Q2 FY26)
- Rs 10,053 crore
- Net Profit Growth (Q2 YoY)
- 32%
- Net Premium Income (Q2 FY26)
- Rs 1,26,479 crore
- Net Premium Income Growth (Q2 YoY)
- 5.5%
- Value of New Business (VNB) Margin (Q2 FY26)
- 17.6%
- VNB Margin (Q2 FY25)
- 16.2%
- Overall Market Share (H1 FY26)
- 59.41%
- Solvency Ratio (Q2 FY26)
- 213%
Sources
Shriram General Insurance Q2 net rises 3% to ₹144 crore
LIC Q2 results: Profit jumps 32% to Rs 10,053 crore; Net Premium Income rises 5.4% - Industry News
LIC Q2 results: Profit rises 31% YoY to Rs 10,098 crore; premium income up 5%
LIC Q2 Results: Profit surges 31% YoY to ₹10,098 crore. Check details
LIC Q2FY26 net profit up by 31% At Rs 10,098 Crore
LIC Q2 Net Profit Jumps 31% to Rs 10,098 Cr on Strong Premium Growth; CEO Expects Robust H2 Demand
LIC Q2 net profit surges 32% to Rs 10,053 crore
