In Q1FY27, LIC’s economic profit, also known as the value of new business (VNB), saw robust year-on-year growth of 61% to ₹3,136 crore. For life insurance companies, economic profit matters more than the accounting profit. That’s because VNB shows how much profit can be expected from annualized premium equivalent (APE) of a current year, whereas accounting profit is the profit accruing from policies sold earlier and is also distorted by initial policy selling costs, including commission.
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