India’s LIC Reports Strong Profit Growth and Optimistic Outlook for Second Half
Life Insurance Corporation of India (LIC) posts impressive profit growth, stronger margins, and a confident forecast for the rest of the fiscal year, driven by robust policy demand and strategic product optimization.
India’s largest insurer, Life Insurance Corporation of India (LIC), has reported a remarkable rise in profit and margin expansion for the second quarter of the fiscal year.
The positive results reflect the company’s strong performance, innovative strategies, and growing customer trust across India.
LIC’s profit after tax surged to 100.53 billion rupees ($1.14 billion) for the quarter ended September 30, marking a significant increase from 76.21 billion rupees in the same period last year.
This impressive growth demonstrates the insurer’s ability to navigate regulatory changes and market challenges while maintaining financial strength.
The company’s net premium income also climbed 5.5%, reaching 1.26 trillion rupees, supported by an improved product mix and rising demand for life insurance policies.
LIC’s leadership credited this growth to its timely product diversification, enhanced customer engagement, and wider distribution network.
During an investor briefing, CEO and Managing Director R. Doraiswamy expressed confidence that the second half of the fiscal year will bring even stronger growth.
He noted that the reduction in Goods and Services Tax (GST) on insurance from late September is expected to further boost policy demand and make insurance products more accessible to a wider section of the population.
While the tax revision raised concerns over reduced input tax credits for insurers, LIC reassured investors that the company had not experienced any significant impact.
It remains proactive in monitoring market developments and continues to focus on long-term profitability.
The company’s “value of new business” (VNB)—a key measure of expected profits from new premiums—rose by 8% compared to last year. The VNB margin also improved to 17.6% from 16.2%, showcasing LIC’s increasing efficiency and profitability.
This improvement was largely driven by a strategic focus on higher-value non-participating policies and larger ticket-size products.
The share of non-participating policies in LIC’s overall product mix rose to 36.3% during the half-year period, up from 26.3% a year ago. These policies typically carry higher margins, helping LIC enhance its profitability without compromising customer value.
LIC’s operating expenses and commission payouts dropped by 6.5% to 152.34 billion rupees, highlighting the company’s ongoing efforts to optimize costs and improve operational efficiency.
Doraiswamy emphasized that LIC is continuously working on refining its product and channel mix to strengthen profitability while keeping costs under control.
The insurer’s peers, such as ICICI Prudential Life Insurance and SBI Life Insurance, have also reported strong margins, reflecting overall industry resilience. However, LIC continues to lead the sector, thanks to its scale, trust-based brand, and nationwide reach.
Looking ahead, LIC remains focused on expanding its digital presence, improving customer experience, and introducing innovative policy options tailored to diverse financial needs.
The company’s strategic direction is expected to strengthen its position not just as India’s largest insurer but also as a global insurance leader.
With steady premium growth, increasing operational efficiency, and a positive market outlook, LIC’s future appears bright. The company’s performance this quarter reaffirms its ability to adapt, innovate, and lead in India’s dynamic financial landscape.
