LIC Q2 FY27 profit rises 20% to ₹12,115 crore; premium income up 16%
Synopsis
LIC's Q2 FY27 results go beyond a 20% profit beat — the standout story is a 61% surge in Value of New Business and a 750-basis-point VNB margin expansion to 22.9%. That signals India's largest insurer is not just growing faster, it is becoming structurally more profitable, shifting its product mix toward higher-margin policies in a market where private rivals have long led on profitability metrics.
Key Takeaways
LIC reported a consolidated net profit of ₹12,115 crore in Q2 FY27 , up 20 per cent year-on-year from ₹10,098 crore .
Net premium income rose 16.2 per cent to ₹1.47 lakh crore from ₹1.27 lakh crore a year earlier.
Value of New Business (VNB) jumped 61 per cent to ₹3,136 crore ; VNB margin expanded 750 basis points to 22.9 per cent .
GNPA ratio improved to 1.16 per cent from 1.21 per cent in the preceding quarter.
In Q1 FY27 , LIC had posted a 22.8 per cent profit rise to ₹13,492 crore , with other income surging to ₹635 crore from ₹130 crore .
Life Insurance Corporation of India (LIC) on Thursday, 5 November 2026 reported a 20 per cent year-on-year rise in consolidated net profit to ₹12,115 crore for the second quarter of FY27 (Q2 FY27, quarter ended September 2026), driven by robust premium collections and a steady improvement in asset quality. The country's largest insurer had posted a consolidated net profit of ₹10,098 crore in the corresponding quarter of the previous year, according to its stock exchange filing.
Premium Income and Revenue Growth
LIC's net premium income climbed 16.2 per cent year-on-year to ₹1.47 lakh crore during the quarter, up from ₹1.27 lakh crore a year earlier, reflecting steady momentum across its core insurance business. Overall premium income mirrored this trajectory, holding at ₹1.47 lakh crore for the quarter, as per the insurer's regulatory filing.
Asset Quality Improves
On the asset quality front, LIC reported a meaningful decline in its gross non-performing asset (GNPA) ratio, which eased to 1.16 per cent from 1.21 per cent in the preceding quarter. While the absolute level remains modest for an insurer of LIC's scale, the directional improvement signals tighter credit discipline within its lending portfolio.
Value of New Business Surges 61%
A standout metric for the quarter was the sharp jump in the Value of New Business (VNB), which surged 61 per cent to ₹3,136 crore compared to the same quarter a year earlier. The VNB margin expanded by 750 basis points to 22.9 per cent from 15.4 per cent in the year-ago period — a significant structural improvement that signals LIC is writing more profitable new policies, not just more of them. This metric is closely watched by analysts as an indicator of long-term earnings quality rather than near-term revenue size.
How Q2 FY27 Compares with Recent Quarters
The Q2 FY27 profit of ₹12,115 crore follows a strong Q1 FY27, when LIC had posted a 22.8 per cent increase in net profit at ₹13,492 crore. In that preceding quarter, net premium income had grown 7 per cent year-on-year to ₹1.27 lakh crore, while other income had jumped to ₹635 crore from ₹130 crore a year ago. The sequential dip in absolute profit from Q1 to Q2 is not unusual for LIC given the seasonal distribution of large premium renewals, but the year-on-year trajectory remains firmly positive.
What This Means Going Forward
LIC's combination of double-digit premium growth, expanding VNB margins, and a declining GNPA ratio positions the insurer on a stronger footing as it navigates rising competition from private players. Notably, the significant VNB margin expansion — from 15.4 per cent to 22.9 per cent — suggests a deliberate product-mix shift toward higher-margin policies, a strategy LIC's management had flagged in earlier investor communications. Analysts will watch whether this margin improvement is sustained in the second half of FY27 as the competitive landscape intensifies.
Point of View
But the VNB margin jump from 15.4 per cent to 22.9 per cent is the number that actually matters. LIC has historically lagged private insurers on new business profitability — a gap critics attributed to its reliance on low-margin savings products. A 750-basis-point expansion in a single quarter suggests a meaningful product-mix shift, not a one-off. The question is whether this is structural or seasonal: if LIC sustains VNB margins above 20 per cent through H2 FY27, it would begin to close the valuation discount it has carried relative to private peers since its 2022 listing.
NationPress
5 Nov 2026
Frequently Asked Questions
What was LIC's net profit in Q2 FY27?
LIC reported a consolidated net profit of ₹12,115 crore in Q2 FY27 (quarter ended September 2026), a 20 per cent increase year-on-year from ₹10,098 crore in Q2 FY26.
How much did LIC's premium income grow in Q2 FY27?
LIC's net premium income grew 16.2 per cent year-on-year to ₹1.47 lakh crore in Q2 FY27, up from ₹1.27 lakh crore in the same quarter a year earlier.
What is LIC's Value of New Business (VNB) and why did it surge?
VNB measures the present value of future profits expected from new policies written in a period — a key indicator of long-term earnings quality. LIC's VNB jumped 61 per cent to ₹3,136 crore in Q2 FY27, with the VNB margin expanding 750 basis points to 22.9 per cent, suggesting a shift toward higher-margin policy products.
How did LIC's asset quality change in Q2 FY27?
LIC's gross non-performing asset (GNPA) ratio improved to 1.16 per cent in Q2 FY27 from 1.21 per cent in the preceding quarter, indicating tighter credit discipline within its lending portfolio.
How does Q2 FY27 compare with LIC's Q1 FY27 performance?
In Q1 FY27, LIC had posted a net profit of ₹13,492 crore, a 22.8 per cent year-on-year rise, with net premium income up 7 per cent to ₹1.27 lakh crore. The Q2 profit of ₹12,115 crore is sequentially lower but marks a significantly stronger year-on-year base comparison.
