LIC Launches New Jeevan Dhara-II and Health Plans to Boost Non-Par Portfolio

Key numbers

PE TTM	8.23xSector 21.62x
Market Cap	₹4.94L CrLarge Cap
Net Profit Qtr	₹13,584 CrUp 24% YoY
1Yr Change	-12.9%Price Performance

Key highlights

• Three new products targeting savings, annuity, and health protection segments
• All new offerings are Non-Participating and Non-Linked individual plans
• Launch effective date set for October 19, 2026, for the domestic market
• New Jeevan Dhara-II serves as a deferred annuity plan for long-term savings
• Health Shield and New Cancer Cover focus on pure risk protection in the health space

LIC Expands Non-Par Portfolio with New Annuity and Health Plans

Life Insurance Corporation of India is diversifying its product basket with the introduction of three new plans aimed at the domestic market. LIC’s New Jeevan Dhara-II is designed as a Non-Participating, Non-Linked, Individual, Savings, Deferred Annuity Plan. Alongside this, the corporation is entering the pure risk health segment with LIC’s Health Shield and LIC’s New Cancer Cover.

These health-focused plans are individual pure risk products that do not link to market performance, ensuring guaranteed protection. The launch of these products on October 19, 2026, reflects the corporation's continued pivot towards high-margin non-participating business segments.

Strategic Alignment with Margin Expansion Goals

The launch follows management guidance from May 2026, where the corporation expressed intent to expand the share of individual non-participating business from the 35.11 percent level seen in FY26. This focus on non-par products is central to improving Value of New Business (VNB) margins, which reached 22.9 percent in Q1 FY27. By introducing pure risk plans like Health Shield and Cancer Cover, LIC is competing more directly in the retail health protection space.

These launches complement earlier 2026 introductions, such as the New Bima Jyoti savings plan in August and the Group Term Ease Plan in February.

Financial Performance and Market Positioning

• Operating Revenue for the quarter ended June 30, 2026, stood at ₹239,865.7 crore
• Net Profit for the same period grew by 23.98 percent year-on-year to ₹13,584.25 crore
• The corporation maintains a TTM Net Profit of ₹60,080.35 crore
• P/E ratio stands at 8.23x, compared to an industry average of 30.52x
• Promoter holding remains high at 96.5 percent as of the latest quarter

Historical Product Launch Roadmap

LIC has maintained a steady pace of product innovation throughout 2025 and 2026. Notable earlier launches include the Jeevan Utsav Single Premium plan in January 2026 and the Jan Suraksha and Bima Lakshmi plans in October 2025. The current launch of New Jeevan Dhara-II particularly addresses the rising demand for retirement solutions through deferred annuities.

As the corporation scales its digital and agency distribution for these new risk-based products, it aims to capture a larger share of the health insurance market, which has traditionally seen strong competition from private specialized health insurers.

What to watch next

• Board meeting for approval of Q2 and H1 FY27 financial results following the insider trading window closure on October 1, 2026
• Further improvement in Net Value of New Business margins from the 22.9 percent recorded in Q1 FY27
• Growth in individual non-par business share as a percentage of total annual premium equivalent
• Market response and policy uptake for New Jeevan Dhara-II starting October 19, 2026

Life Insurance Corporation of India · financial snapshot

Share price	₹391
Market capitalisation	₹4.95L Cr
Revenue (annual)	₹9.78L Cr
Net profit (annual)	₹57,453.15 Cr
Revenue (latest quarter)	₹2.40L Cr-13.33% vs previous quarter
Net profit (latest quarter)	₹13,584.25 Cr-42.11% vs previous quarter
P/E (TTM)	8.23×Sector 21.62×
Promoter holding	96.5%0.00% QoQ
FII holding	0.44%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.