This article first appeared on GuruFocus .
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Market Share by First Year Premium Income:59.41% for the six months ending September 30, 2025, down from 61.07% in the previous year.
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Total Premium Income:INR2,45,680 crores, a growth of 5.14% year-on-year.
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Individual New Business Premium Income:INR28,491 crores, a decrease of 3.54% year-on-year.
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Renewal Premium Income of Individual Business:INR1,22,224 crores, up from INR1,15,158 crores.
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Group Business Total Premium Income:INR94,965 crores, a growth of 6.73% year-on-year.
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Profit After Tax:INR21,040 crores, a growth of 16.36% year-on-year.
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Net VNB:INR5,111 crores, a growth of 12.3% year-on-year.
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Net VNB Margin:Improved by 140 basis points to 17.6%.
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Solvency Ratio:Improved to 2.13 from 1.98.
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Indian Embedded Value (IEV):INR8,13,230 crores, a decrease of 1.03% year-on-year.
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Assets Under Management (AUM):INR57,22,896 crores, a growth of 3.31% year-on-year.
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Expense Ratio:Decreased by 146 basis points to 11.28%.
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Bancassurance and Alternate Channels New Business Premium Income:INR2,024.10 crores, a growth of 67.62% year-on-year.
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Number of New Policies Sold:72,60,573, down from 91,70,420.
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Number of Agents:14,85,325, up from 14,39,658.
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Warning! GuruFocus has detected 4 Warning Sign with BOM:543526.
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Release Date: November 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Life Insurance Corporation of India ( BOM:543526 ) reported a 16.36% year-on-year growth in profit after tax for the six months ended September 30, 2025.
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The company's total premium income increased by 5.14% year-on-year, reaching INR2,45,680 crores for the six months ended September 30, 2025.
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The net VNB margin improved by 140 basis points to 17.6% for the six months ended September 30, 2025.
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Assets under management grew by 3.31% year-on-year, reaching INR57,22,896 crores as of September 30, 2025.
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Bancassurance and Alternate Channels showed strong growth, with a 67.62% increase in new business premium income year-on-year.
Negative Points
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Market share by first-year premium income decreased from 61.07% to 59.41% year-on-year.
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The individual new business premium income dropped by 3.54% year-on-year.
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The number of new policies sold decreased significantly from 91,70,420 to 72,60,573 year-on-year.
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Persistency rates showed a decline in the 13th and 25th month cohorts on a premium basis.
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The Indian Embedded Value (IEV) decreased by 1.03% year-on-year.
Q & A Highlights
Q: With ULIP becoming more prominent, should we expect its share to grow significantly, similar to private players? Also, how does the company's solvency ratio compare under the risk-based capital regime? A: ULIP is indeed gaining prominence, and LIC has recorded significant growth in this segment. Regarding solvency, discussions with the regulator are ongoing, and the final impact under the risk-based capital regime is yet to be determined. (Doraiswamy Ramchandran, CEO & Ajay Shrivastava, Appointed Actuary)
Q: There has been a sharp drop in the number of policies (NOP) sold. What steps are being taken to improve this? Also, why is there a discrepancy between ANW and VF growth? A: The drop in NOP is due to regulatory changes and GST reforms, which temporarily affected sales. We expect recovery in the coming months. The discrepancy between ANW and VF is largely due to market conditions affecting fair value changes. (Doraiswamy Ramchandran, CEO & Ajay Shrivastava, Appointed Actuary)
Q: How will the GST input tax credit impact the embedded value and VNB margins? Are there any plans to offset this impact? A: The impact of GST reforms has been factored into our current metrics. We are focusing on increasing business volume and operational efficiency to mitigate any negative effects. (Ajay Shrivastava, Appointed Actuary)
Q: Can you explain the impact of the GST exemption on future business growth and margins? A: The GST exemption is expected to boost business growth by making insurance more affordable. We anticipate this will positively impact margins through increased sales volume. (Doraiswamy Ramchandran, CEO)
Q: What is the strategy for growth in the annuity business, given the recent decline? A: We plan to focus on increasing annuity sales alongside ULIPs and savings products. While no new products are planned, we aim to enhance focus and marketing efforts in this area. (Unidentified Company Representative)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
