Did LIC Achieve a 32% Surge in Q2 Net Profit at Rs 10,053 Crore?
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Synopsis
LIC's recent financial report reveals an impressive 32% increase in Q2 net profit, showcasing the company's growth trajectory amidst evolving market conditions. With a commitment to customer benefits and industry leadership, LIC aims to further bolster its position in the insurance sector.
Key Takeaways
- 32% increase in Q2 net profit to Rs 10,053 crore.
- 5.5% growth in net premium income to Rs 1.26 lakh crore.
- Solvency ratio improved to 2.13%.
- NPA reduced to 3.94%.
- Brand Strength Index score of 88 out of 100.
New Delhi, Nov 6 (NationPress) The Life Insurance Corporation of India (LIC) announced an impressive 32% surge in standalone net profit, reaching Rs 10,053.39 crore for the second quarter of the current financial year. This marks a significant increase compared to Rs 7,620.86 crore recorded during the same period last year.
During the July-September quarter, LIC's net premium income experienced a 5.5% year-on-year growth, amounting to Rs 1.26 lakh crore, up from Rs 1.2 lakh crore in the previous year. Furthermore, the solvency ratio improved to 2.13%, an increase from 1.98% in the same quarter of the prior year.
The asset quality for policyholders' funds also saw a positive shift, with non-performing assets (NPA) decreasing to 3.94% from 6.17% in Q2 FY25.
For the first half of FY26 (H1FY26), LIC reported a net profit of Rs 21,040 crore, reflecting a 16.36% year-on-year increase.
The company's total premium income for H1FY26 rose by 5.14% to Rs 2,45,680 crore. Individual business premiums grew to Rs 1,50,715 crore, while group business premiums increased to Rs 94,965 crore.
LIC's renewal premium in the individual segment also improved, showing a growth of 6.14% to Rs 1,22,224 crore.
R Doraiswamy, the CEO and MD of LIC, expressed optimism regarding the positive impact of the recent GST changes introduced for the Insurance Industry by the Government.
“We firmly believe that these changes serve the best interest of customers and will further stimulate the growth of the life insurance sector in India. As LIC, we are committed to ensuring all intended benefits from these GST changes reach our customers,” Doraiswamy stated.
According to the Brand Finance Insurance 100 2025 report, LIC is ranked third among the world's strongest insurance brands, achieving a Brand Strength Index (BSI) score of 88 out of 100. Poland's PZU topped the list with a BSI score of 94.4, followed closely by China Life Insurance at 93.5.
Point of View
I believe this impressive profit leap by LIC is indicative of a healthier insurance sector moving forward. The company’s adaptability and commitment to customer satisfaction is crucial in maintaining its stronghold in the market. With favorable GST changes, LIC's growth trajectory is poised to enhance the overall insurance landscape in India, benefiting consumers and investors alike.
NationPress
06/11/2025
Frequently Asked Questions
What was LIC's net profit for Q2?
LIC reported a net profit of Rs 10,053.39 crore for Q2, marking a 32% increase.
How much did LIC's net premium income grow?
LIC's net premium income grew by 5.5% year-on-year, totaling Rs 1.26 lakh crore.
What is the solvency ratio for LIC?
The solvency ratio for LIC increased to 2.13%.
What improvements were noted in asset quality?
LIC's NPA fell to 3.94% from 6.17% in Q2 FY25.
What does the Brand Strength Index score indicate for LIC?
LIC achieved a Brand Strength Index score of 88 out of 100, ranking third among the world's strongest insurance brands.
