Winning Bizness Desk
Mumbai. India’s largest insurer, Life Insurance Corporation of India (LIC), reported a net profit of Rs 10,098 crore for the July-September quarter of FY2025-26, marking a 30.65% year-on-year growth. The company’s profit in the same quarter last year stood at Rs 7,729 crore. The insurer’s total income rose 7.54% to Rs 2,40,454 crore, while premium collections touched Rs 2.27 lakh crore during the quarter, indicating sustained trust among policyholders and stable financial performance.
Premium collections see steady growth
During the second quarter, LIC collected Rs 1,26,930 crore in premium income, compared to Rs 1,20,326 crore during the same period last year, reflecting a growth of 5.49%. The total premium includes quarterly, half-yearly, and annual policy payments made by customers. This figure represents the net premium income—the key source of revenue for any life insurance company. The growth in premium income highlights the continuing confidence of the public in LIC’s offerings.
AUM crosses Rs 57 lakh crore mark
LIC’s assets under management (AUM) for the quarter stood at Rs 57,22,896 crore, or roughly Rs 57.23 lakh crore. This marks a 3.31% rise compared to Rs 55,39,516 crore reported in the same period last year. AUM measures the total market value of assets managed by a financial institution, reflecting the company’s size and investor confidence. In simple terms, a higher AUM indicates that more people trust the company to manage their money. LIC’s vast AUM reinforces its position as one of the most trusted financial institutions in the country.
Understanding AUM and its significance
The concept of assets under management represents the combined value of funds and investments overseen by a company or fund manager. It fluctuates daily based on market performance. For example, if a fund manages Rs 100 crore from various investors, its AUM stands at that figure. A rise in market value increases AUM, while a market decline lowers it. LIC’s rising AUM signifies its continued ability to attract and retain investors despite fluctuations in the broader financial market.
LIC share performance and market value
Ahead of the quarterly results, LIC shares closed 1.29% lower at Rs 894 on November 6. Over the past month, the stock has dipped 1.45%, and in the past year, it has fallen 5.42%. However, in the last six months, LIC’s shares have gained nearly 14%, indicating recovery momentum. The insurer remains one of India’s top 10 most valuable companies, with a market capitalization of Rs 5.66 lakh crore. Despite short-term volatility, the company’s long-term fundamentals and strong investor base provide stability.
Legacy and market dominance since 1956
Founded in 1956, the Life Insurance Corporation of India continues to hold a dominant 65.83% share in the country’s life insurance market as of FY2024-25. In the previous financial year, it issued 1.78 crore policies and generated Rs 2,26,669 crore in first-year premium income. LIC offers a wide range of insurance products, including term plans like New Tech Term and Digi Term, designed with flexible premium options and increasing sum assured benefits, catering to the evolving financial needs of Indian consumers.
Summary points
- LIC reports Rs 10,098 crore profit in Q2FY26, up 30.65% year-on-year.
- Total income rises 7.54% to Rs 2.4 lakh crore in the July-September quarter.
- Premium income climbs 5.49% to Rs 1.27 lakh crore compared to last year.
- Assets under management reach Rs 57.23 lakh crore, up 3.31% from FY25 Q2.
- LIC’s share dips 1.29% to Rs 894 but gains 14% over six months.
- Company retains 65.83% market share in India’s life insurance sector.
- Established in 1956, LIC continues to lead with strong investor and policyholder trust.
