Life Insurance Corporation of India (LICI) Q2 25/26 earnings summary

Executive summary

• Maintained leadership in India's life insurance market, with a 59.41% share by first-year premium income in H1 FY26 and recognition as the world's 3rd strongest insurance brand.

• Total premium income for H1 FY26 grew 5.14% year-over-year to ₹2,45,680 crore, and profit after tax rose 16.36% to ₹21,040 crore.

• Non-PAR share of individual APE increased to 36.31% from 26.31% year-over-year, reflecting a strategic product mix shift.

• Value of new business (VNB) grew 12.3% year-over-year to ₹5,111 crore, with VNB margin improving by 140 bps to 17.6%.

• Continued product innovation with 57 offerings as of September 2025, including new non-PAR products and riders.

Financial highlights

• Group business premium income increased 6.73% year-over-year to ₹94,965 crore.

• Individual new business premium declined 3.54% year-over-year, while renewal premium income rose to ₹1,22,224 crore.

• Asset under management (AUM) grew 3.31% year-over-year to ₹57,22,896 crore as of September 2025.

• Solvency ratio improved to 2.13 from 1.98 year-over-year.

• Expense ratio reduced to 11.28% from 12.74% year-over-year.

Outlook and guidance

• Management expects continued growth in non-PAR business and is confident in maintaining or improving VNB margins, supported by product mix and operational efficiency.

• GST exemption on life insurance is expected to boost industry penetration and business growth in coming quarters.

• Focus on digital transformation, maximizing investment yield, and consolidating gains in non-par products and alternate channels.

• Strategy to regain/enhance market share in select categories and geographies, and align HR with emerging market demands.

• Interim results are not necessarily indicative of full-year performance due to industry seasonality.