Is LIC Profit Growth Hiding a Retail Sales Problem Behind Group Insurance?

India’s biggest life insurer posted a strong quarter, but a dip in new policy sales shows not every part of the business is moving at the same speed.

LIC profit has jumped again, and CIO Bulletin has been going through the numbers behind it. India’s largest life insurer reported more than 20% growth in second-quarter profit on Thursday, helped by higher premium income, especially from group insurance.

The Numbers Behind the Rise

Life Insurance Corporation of India, known as LIC, earned a net profit of ₹12,076 crore for the three months ended September 30, 2026. A year earlier it earned ₹10,053 crore. Its net premium income, which is the money customers pay for policies, grew 16.2% to ₹1.47 lakh crore.

Group insurance, where one contract covers many people, often through employers, also lifted collections. Much of the push came from single premiums, which are one-time lump-sum payments for a policy. They jumped 35%. Renewal premiums, the repeat payments from existing customers, rose 5.2% to ₹68,375 crore.

Where Sales Lost Steam

Not every number looked rosy. First-year premium income, a key sign of new policy sales, fell 3.7% to ₹10,432 crore. A weaker first-year number matters because it shows how many fresh customers are signing up. LIC’s chairman and managing director, R. Doraiswamy, said products linked to the stock market, known as ULIPs, tend to suffer when markets are subdued.

• Net profit rose over 20% to ₹12,076 crore

• Net premium income grew 16.2% to ₹1.47 lakh crore

• Single premiums jumped 35%

• First-year premium income fell 3.7%

• Profit slipped about 10.5% from the previous quarter

Doraiswamy has also spelled out LIC’s priorities. In August, he said, “our focus will be on increasing protection in the next few quarters.” So can LIC turn weaker retail sales around while group insurance keeps lifting profit?

For now, the strong profit keeps LIC on a solid footing, though the dip in new policy sales is a trend worth watching. Investors and policyholders will want to see whether sales recover. CIO Bulletin will keep following LIC profit and premium trends in the coming quarters.

News Source: Reuters, https://www.reuters.com/