LIC H1 FY27: Profit Up 21.5%, VNB Jumps 34%

LICI Life Insurance Corporation of India (LIC) reported strong growth in profitability and new business value during the first half of FY27, with significant improvement in VNB margins and solvency position. H1 FY27 Financial Performance Profit After Tax (PAT): ₹25,568 crore, up 21.52% YoY. Total Premium Income: ₹2,74,269 crore, up 11.64%. Value of New Business (VNB): ₹6,846 crore, up 33.95%. VNB Margin: 22.3%, compared with 17.6% last year. Annualised Premium Equivalent (APE): ₹30,696 crore, up 5.72%. Assets Under Management: ₹59.61 lakh crore, up 4.16%. Strong Improvement in New Business Profitability LIC's VNB growth of nearly 34% is one of the key highlights of the results. Net VNB increased from ₹5,111 crore to ₹6,846 crore. VNB margin expanded by 470 basis points to 22.3%. Individual new business premium income increased 14.86% to ₹32,725 crore. Group new business premium income increased 20.63% to ₹1,11,685 crore. Individual protection APE increased 58.59% to ₹157 crore. The improvement in VNB margin indicates better profitability from new policies and a favourable product mix. Q2 FY27 Performance For the September quarter: Net Profit: ₹12,076 crore, up 20.1% YoY. Net Premium Income: ₹1,47,018 crore, up 16.2% YoY. Total Income: ₹2,62,739 crore. Investor Perspective LIC's H1 performance reflects a positive shift towards higher-margin business, with VNB growing nearly 34% and margins improving by 470 basis points. Improved solvency and a lower expense ratio further strengthen the financial position. However, slower individual policy growth and the decline in embedded value remain important monitorables. Disclaimer: This content is for educational and informational purposes only and should not be considered investment advice or a recommendation to buy or sell any security. Investors should conduct their own research and consider their risk profile before making any investment decision.