LICI · Financial Services · filed 5 Nov 2026
Life Insurance Corporation of India reported total income of ₹2.62 lakh cr for July to September 2026, +9.8% on the year and +10.7% on the quarter.
Net profit was ₹12,076 cr, +20.1% on the year and −10.5% on the quarter, with earnings per share of ₹9.55.
Insurers are read on premium growth and, for life insurers, the value of new business; accounting profit says little about one quarter.
The auditor drew attention to a matter in the limited review report. Read it before the numbers.
Source: Auditor (p. consolidated limited review report p.1-3)
Could not run on this quarter: Exceptional items that recur, IPO money used as stated, Related-party transactions, Promoter pledges and allotments, Earlier promises against delivery, Asset quality (lenders), Net interest margin (lenders), Net interest income against profit (lenders). The filing did not carry these lines.
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
| Balance sheet | Sep '26 | Last year end | Change |
|---|---|---|---|
| Cash | ₹56,748 cr | ₹64,284 cr | ▼ 11.7% |
| Bank balances | ₹56,748 cr | ₹64,284 cr | ▼ 11.7% |
| Equity | ₹1.88 lakh cr | ₹1.75 lakh cr | ▲ 7.4% |
| Total assets | ₹60.93 lakh cr | ₹58.66 lakh cr | ▲ 3.9% |
Emphasis of matter 1: “Note No. 7, wherein it is mentioned that pursuant to the Regulatory approval received by the Corporation , an amount of Rs.9,280.37 crore pertaining to additional contribution due to increase in family pension is being amortised over 20 quarters commencing… Read in full
Note No. 7, wherein it is mentioned that pursuant to the Regulatory approval received by the Corporation , an amount of Rs.9,280.37 crore pertaining to additional contribution due to increase in family pension is being amortised over 20 quarters commencing from Q3 of the FY 2023-24 amounting to Rs.464.02 crore per quarter. Accordingly, an amount of Rs.464.02 crore and Rs. 928.04 crore has been charged to Consolidated Revenue Account for the quarter and half year ended September 30, 2026, respectively. The balance amount of Rs.3,712.13 crore shall be amortised over the subsequent quarters upto Q2 of the FY 2028-29.
Emphasis of matter 2: “Note No.8, wherein it is mentioned that pursuant to Regulatory approval received by the Corporation , an amount of Rs.7,230.09 crores in Par segment pertaining to excess Expenses of Management for the FY 2022-23 shall be replenished from Shareholders' account… Read in full
Note No.8, wherein it is mentioned that pursuant to Regulatory approval received by the Corporation , an amount of Rs.7,230.09 crores in Par segment pertaining to excess Expenses of Management for the FY 2022-23 shall be replenished from Shareholders' account in equal annual instalments not exceeding three, commencing from Q1 of the FY 2024-2025. Accordingly, an amount of Rs. 602.51 crore and Rs. 1,205.02 crore has been replenished from the Shareholders' account for the quarter and half year ended September 30, 2026, respectively. The balance amount of Rs.1,205.02 crore shall be replenished from Shareholders' account over the subsequent quarters upto Q4 of the FY 2026-27.
Emphasis of matter 3: “Note No. 9, wherein it is mentioned that pursuant to Regulatory approval received by the Corporation , an amount of Rs. 5,477.10 crore towards additional pension liability pertaining to Par segment is being charged to the Shareholders account over a… Read in full
Note No. 9, wherein it is mentioned that pursuant to Regulatory approval received by the Corporation , an amount of Rs. 5,477.10 crore towards additional pension liability pertaining to Par segment is being charged to the Shareholders account over a period not exceeding three years commencing from the FY 2024-2025. Accordingly, an amount of Rs 456.42 crore and Rs.912.84 crore has been charged to Shareholders' account for the quarter and half year ended September 30, 2026 respectively. The balance amount of Rs.912.85 crore shall be charged to Shareholders' account over the subsequent quarters upto Q4 of the FY 2026-27.
Other matter 1: “The actuarial valuation of liabilities for life policies in force is the responsibility of the Corporation's Appointed Actuary (the "Appointed Actuary") . The actuarial valuation of these liabilities for life policies in force and for policies in respect of which… Read in full
The actuarial valuation of liabilities for life policies in force is the responsibility of the Corporation's Appointed Actuary (the "Appointed Actuary") . The actuarial valuation of these liabilities for life policies in force and for policies in respect of which premium has been discontinued but liability exists as at September 30, 2026 has been duly certified by the Appointed Actuary and in his opinion, the assumptions for such valuation are in accordance with the guidelines and norms issued by the IRDAI and the Institute of Actuaries of India in concurrence with the Authority. We have relied upon the Appointed Actuary's certificate in this regard during our review of the valuation of liabilities for life policies in force and for policies in respect of which premium has been discontinued but liability exists, as contained in the Statement.
Other matter 2: “The Statement includes results of 7 subsidiaries certified by their respective management, which have not been subject to review, whose interim financial results reflects total assets of Rs. 23,473.76 crores, total revenue of Rs. 801 .06 crore and Rs. 1,577.18… Read in full
The Statement includes results of 7 subsidiaries certified by their respective management, which have not been subject to review, whose interim financial results reflects total assets of Rs. 23,473.76 crores, total revenue of Rs. 801 .06 crore and Rs. 1,577.18 crores and profit/(loss) after tax of Rs. 41 .05 crore and Rs. 135.40 crores for the quarter and half year ended September 30, 2026, respectively and net cash inflows/outflows/outflows) of Rs.424.88 crore for the half year ended then. According to the information and explanations given to us by the Management, these financial results are not material to the Group.
Other matter 3: “The Statement includes results of 3 associates, which have not been reviewed by us, whose interim financial results reflect share in profit of Rs. 1,649.13 crore and Rs. 3,259.84 crore for the quarter and half year ended September 30, 2026… Read in full
The Statement includes results of 3 associates, which have not been reviewed by us, whose interim financial results reflect share in profit of Rs. 1,649.13 crore and Rs. 3,259.84 crore for the quarter and half year ended September 30, 2026 respectively. These financial results have been reviewed by other auditors whose reports have been furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these associates is based solely on the reports of the other auditors and the procedures performed by us as stated in paragraph 3 above.
Other matter 4: “The Statement includes results of 3 associates, certified by their respective management, which have not been subject to review, whose interim financial results reflect share of profit of Rs. 7.25 crores and Rs. 9.13 crores for the quarter and half… Read in full
The Statement includes results of 3 associates, certified by their respective management, which have not been subject to review, whose interim financial results reflect share of profit of Rs. 7.25 crores and Rs. 9.13 crores for the quarter and half year September 30, 2026, respectively. According to the information and explanations given to us by the Management, these financial results are not material to the Group.
Filing p. consolidated limited review report p.1-3
Appointed Smt. Naga Nalini Kalluri as Chief Compliance Officer & Key Managerial Personnel w.e.f. November 06, 2026, in place of Shri Jayasimhan Madabhushi Matam Tirumala. (p. outcome letter p.2, Annexure-I)
Tax: Consolidated tax expense of ₹59.78 crore on Profit before tax of ₹12,174.56 crore for Q2 FY27, as insurance taxation applies on actuarial surplus/transfers rather than corporate accounting PBT.
| Metric | Q2 FY27 | Q1 FY27 | Q2 FY26 |
|---|---|---|---|
| APE (₹ cr) | 30,696 | — | 29,034 |
| VNB (₹ cr) | 6,846 | — | 5,111 |
| VNB margin | 22.3% | — | 17.6% |
| 13th-month persistency | 74.69% | 70.38% | 75.29% |
| 61st-month persistency | 61.03% | 61.27% | 63.81% |
| Solvency ratio (×) | 2.35 | 2.42 | 2.13 |
| Protection share of APE | 0.91% | — | — |
| Assets Under Management (₹ crore) | 5,960,941 | — | 5,722,896 |
Worked out from filed numbers. Protection Share in Individual APE: Individual Protection APE (₹157 crore) / Total Individual APE (₹17,224 crore) * 100 = 0.91%
Actuarial valuation of policy liabilities certified by Appointed Actuary per IRDAI norms; assumption changes contributed +2.8% (+280 bps) positively to VNB margin expansion in H1 FY27.
Positive impact from actuarial assumption updates supported overall VNB margin expansion to 22.3%.
13th month persistency ratio on premium basis stood at 74.69% for H1 FY27 (vs 75.29% in H1 FY26); 61st month persistency ratio stood at 61.03% (vs 63.81% in H1 FY26). Conservation ratio remained strong at 90.20%.
Slight YoY moderation in premium persistency ratios (-60 bps 13M, -278 bps 61M), offset by improvement in policy count persistency (13M up to 67.58%).
Reinsurance ceded is maintained strictly per IRDAI regulatory limits, with high premium retention across individual and group lines.
Substantial retention ratio reflects deep capital strength and underwriting capacity.
Read using the Insurance framework (named in the filing read). Primary valuation lens: P/EV and VNB multiple (life); P/B against combined ratio (general).
Read more closely in this sector: Change in actuarial assumptions · Surrender and lapse trend · Reinsurance share.
| Metric | Guidance | For | Against earlier guidance |
|---|---|---|---|
| Non-Par Share Target in Individual APE | 33.33 | FY2026-27 | unchanged or first given |
Held for next quarter's said-then-did check.
| Segment | Revenue | YoY | Result | YoY |
|---|---|---|---|---|
| Life Participating | ₹1.43 lakh cr | ▲ 2.9% | ₹1,421 cr | ▲ 29.9% |
| Pension Participating | ₹855 cr | ▲ 1.4% | ₹107 cr | ▲ 82.9% |
| Annuity Participating | ₹93.7 cr | ▲ 1.5% | −₹13.3 cr | ▼ 212.5% |
| Life Non Participating | ₹56,141 cr | ▲ 22.3% | ₹9,768 cr | ▲ 13.1% |
| Pension Non Participating | ₹50,161 cr | ▲ 22.0% | ₹527 cr | ▼ 29.4% |
| Annuity Non Participating | ₹7,860 cr | ▲ 14.2% | ₹199 cr | — |
| Variable Non Participating | ₹3.3 cr | ▲ 41.5% | −₹3.1 cr | ▼ 563.6% |
| Health Non Participating | ₹53.6 cr | ▼ 10.8% | ₹17.1 cr | ▼ 68.1% |
| Linked Life Non Participating | ₹5,002 cr | ▼ 1.7% | −₹21.6 cr | — |
| Linked Pension Non Participating | ₹185 cr | ▼ 61.7% | ₹13.2 cr | ▲ 107.8% |
| Linked Health Non Participating | −₹15.0 cr | ▼ 141.6% | ₹8.2 cr | ▼ 73.5% |
| Capital Redemption and Annuity Certain (CRAC) | ₹2.8 cr | ▼ 18.2% | ₹4.7 cr | 0.0% |
| Q2 FY26 | Q1 FY27 | Q2 FY27 | |
|---|---|---|---|
| Total income | ₹2.39 lakh cr | ₹2.37 lakh cr | ₹2.62 lakh cr |
| YoY | — | — | +10% |
| Exceptional items | — | — | — |
| Tax rate | 1% | 1% | 0% |
| Net profit | ₹10,053 cr | ₹13,492 cr | ₹12,076 cr |
| YoY | — | — | +20% |
| EPS | ₹7.95 | ₹10.67 | ₹9.55 |
| Flags | · | · | 1 |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.
Life Insurance Corporation of India reported total income of ₹2.62 lakh cr (+9.8% on the year) and net profit of ₹12,076 cr (+20.1% on the year) for July to September 2026.
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