Financial Performance Highlights

Profitability Metrics:

  • Profit After Tax: ₹25,568 crore for H1 FY27, representing 21.52% YoY growth from ₹21,040 crore in H1 FY26
  • Net Value of New Business (VNB): ₹6,846 crore for H1 FY27, representing 33.95% YoY growth from ₹5,111 crore
  • Net VNB Margin: 22.3% for H1 FY27, improved by 470 basis points from 17.6% in H1 FY26

Premium Income Performance:

  • Total Premium Income: ₹274,269 crore for H1 FY27, representing 11.64% YoY growth from ₹245,680 crore
  • Individual New Business Premium: ₹32,725 crore for H1 FY27, representing 14.86% YoY growth from ₹28,491 crore
  • Renewal Premium: ₹127,950 crore for H1 FY27, representing 4.68% YoY growth from ₹122,224 crore
  • Total Individual Premium: ₹160,675 crore for H1 FY27, representing 6.61% YoY growth from ₹150,715 crore
  • Group Business Premium: ₹113,594 crore for H1 FY27, representing 19.62% YoY growth from ₹94,965 crore
  • Group New Business Premium: ₹111,685 crore for H1 FY27, representing 20.63% YoY growth from ₹92,586 crore

Annualized Premium Equivalent (APE):

  • Total APE: ₹30,696 crore for H1 FY27 (5.72% YoY growth)
  • Individual APE: ₹17,224 crore (56.11% of total)
  • Group APE: ₹13,472 crore (43.89% of total)
  • Individual Protection APE: Grew 58.59% YoY to ₹157 crore
  • Individual APE Composition: PAR business ₹11,364 crore (65.98%), Non-PAR ₹5,861 crore (34.02%)
  • Non-PAR share decreased to 34.02% from 36.31% in H1 FY26

Capital and Solvency Position

Solvency Ratio: 2.35 as of September 30, 2026, improved from 2.13 as of September 30, 2025

Indian Embedded Value (IEV): ₹797,378 crore as of September 30, 2026, decreased by 1.95% YoY from ₹813,230 crore but increased by 1.04% from ₹789,185 crore as of March 31, 2026. The decrease primarily attributed to mark-to-market impacts.

Assets Under Management: ₹59,60,941 crore as of September 30, 2026, representing 4.16% YoY growth from ₹57,22,896 crore

Business Operations and Market Position

Market Share:

  • Overall Market Share: 58.77% by first-year premium income for H1 FY27 (59.41% in H1 FY26)
  • Individual Business Market Share: 37.51% for H1 FY27 (37.21% in H1 FY26)
  • Group Business Market Share: 70.45% for H1 FY27 (72.74% in H1 FY26)

Distribution Channels:

  • Agency Force: 14,52,461 agents as of September 30, 2026 (14,85,325 as of September 30, 2025)
  • Market Share by Agents: 43.70% as of September 30, 2026 (45.86% as of September 30, 2025)
  • Agency Contribution: 98.4% of policies sold and 91.81% of new business premium in H1 FY27

Bancassurance & Alternate Channels:

  • Total Premium: ₹2,458 crore for H1 FY27, representing 21.44% YoY growth from ₹2,024 crore
  • Bank Channel: ₹1,336 crore for H1 FY27, representing 5.56% YoY growth from ₹1,266 crore
  • Alternate Channel: ₹1,122 crore for H1 FY27, representing 48.01% YoY growth from ₹758 crore
  • Channel Contribution: 7.53% of individual new business premium for H1 FY27 (7.12% in H1 FY26)

Product Portfolio and Launches

Product Count: 60 products available as of September 30, 2026 (excluding PMJJBY), comprising:

  • 38 exclusive individual products
  • 13 exclusive group products
  • 1 common product for individual and group
  • 7 individual riders
  • 1 group rider

New Product Launches during H1 FY27:

  • June 1, 2026: LIC's New Jeevan Sathi Single Premium and Limited Premium
  • August 10, 2026: LIC's New Bima Jyoti
  • September 7, 2026: LIC's Jeevan Raksha (term insurance) and LIC's Bima Platinum

Additional Launches (Post-September):

  • October 19, 2026: LIC's New Jeevan Dhara-II Deferred Annuity Plan, LIC's Health Shield, LIC's New Cancer Cover
  • Total products available as of date: 63 (excluding PMJJBY)

Operational Metrics

Persistency Ratios (Premium Basis):

  • 13th month: 74.69% (75.29% in H1 FY26)
  • 25th month: 69.62% (71.37% in H1 FY26)
  • 37th month: 67.17% (67.70% in H1 FY26)
  • 49th month: 64.31% (63.70% in H1 FY26)
  • 61st month: 61.03% (63.81% in H1 FY26)

Persistency Ratios (Policy Count Basis):

  • 13th month: 67.58% (63.36% in H1 FY26)
  • 25th month: 57.29% (60.23% in H1 FY26)
  • 37th month: 55.99% (55.18% in H1 FY26)
  • 49th month: 51.89% (50.67% in H1 FY26)
  • 61st month: 48.33% (51.50% in H1 FY26)

Expense Ratio: 10.41% for H1 FY27, improved by 87 basis points from 11.28% in H1 FY26

Policy Sales: 70,97,094 new policies sold in H1 FY27 compared to 72,60,573 in H1 FY26

Digital Initiatives

ANANDA App: 12,40,676 policies completed in H1 FY27, representing 41.23% YoY growth from 8,78,470 policies

Active Agents on ANANDA: 32.49% growth in number of active agents digitally onboarding customers

MyLIC App: Rating of 4.7 with 98,44,421 unique logins

Super Sales Saathi App: Rating of 4.8 with 5,38,250 agents and 16,175 development officers using it

Claims Processing

Claims Processed: 82,99,758 individual claims in H1 FY27, including 78,90,878 maturity and survival benefit claims

Claim Amounts:

  • Maturity Claims: ₹1,25,806 crore in H1 FY27 (16.93% YoY increase from ₹1,07,587 crore)
  • Death Claims: ₹12,691 crore in H1 FY27 (5.33% YoY increase from ₹12,049 crore)

Social Initiatives

Bima Sakhi Program:

  • 3.04 lakh women designated as Bima Sakhis as of September 30, 2026
  • 10.64 lakh insurance policies sold generating ₹1,548.80 crore new business premium in H1 FY27
  • Coverage: 1,60,928 gram panchayats (66% of total 2,44,524 gram panchayats)

Management Commentary and Outlook

IRDAI Distribution Reforms: Management expressed optimism about proposed distribution sector regulation consultation paper announced by IRDAI in September 2026, believing changes are in customer interest and will accelerate industry growth.

Margin Drivers: Focus on product mix optimization (non-par savings and protection), ticket size increase, operational efficiency improvements, and digital adoption.

ULIP Strategy: 30% of agents strongly positioned to sell ULIPs; focus on higher ticket sizes and market recovery expectations.

Capital Management: Monitoring risk-based capital (RBC) and IFRS reporting developments before final decisions on profit distribution or capital deployment.

Expense Optimization: Office rationalization and process re-engineering initiatives underway with expected expense optimization in coming quarters.

Q&A Session Highlights

Distribution Reforms Impact: Management confident LIC maintains advantageous position due to controlled expense ratio and product pricing capabilities.

VNB Margin Dynamics: Q2 margin decline to 22.3% from 22.9% in Q1 primarily due to 40 bps RFR decrease impacting assumptions (-1.2%), partially offset by business mix improvements (+0.5%)

Persistency Trends: Improvement in policy count persistency not translating to premium persistency due to lower sum assured policies remaining persistent; focus on higher premium policies.

Group Business: Market share decline attributed to cyclical nature and competitive pricing in term assurance segment; margins expected to improve with focus on group annuity and term assurance.

Bancassurance Strategy: Reduced dependence on IDBI Bank (down to 20% of total bancassurance from 40%); expanding partnerships including Yes Bank and RBL Bank.

Product Strategy: New health and annuity products expected to drive growth in H2 FY27; closed-end product for 70th anniversary celebrations ending March 31, 2027.

Hedging Program: Continuing to hedge approximately 80% of non-par premiums at good rates with maturities hedged up to 8 years.

RBC Preparedness: Pro forma submissions made to regulator; capital requirements dependent on final RBC guidelines.