Life Insurance Corporation of India (LIC) expects only a minor impact from higher provisions related to Input Tax Credit (ITC), with its value of new business (VNB) margins remaining stable. LIC CEO R. Doraiswamy said the overall GST effect has been less than 1% so far, adding that the insurer will pass on the benefits of the GST reduction entirely to customers. The company expects the tax cuts on life insurance products to boost sales, strengthen top-line growth, and enhance cost efficiency.
VNB for Q2 FY26 stood at 17.6%, up from 16.2% last year. Annual premium equivalent (APE) growth was muted due to last year’s regulatory changes, but LIC anticipates stronger growth in the second half. The insurer’s non-par business now contributes 36.31% and is expected to stabilize further.
LIC’s market share dipped below 60% owing to GST-related adjustments but is likely to recover. The company reported a standalone Q2 FY26 profit of ₹10,053 crore, up 32% year-on-year, with net premium income rising 5.5% to ₹1.26 lakh crore and solvency improving to 2.13%.
