MUMBAI: National insurer Life Insurance Corporation (LIC) has reported a healthy growth in net profit at Rs 10,098.48 crore for the September quarter, registering a hefty 32 percent jump over Rs 7,728.68 crore in the same quarter last fiscal.
The Corporation’s assets under management rose to Rs 57.22 trillion, up 3.31 percent year-on-year, supported by higher premium income and cost efficiency gains. The insurer’s net premium income for the quarter stood at Rs 1,26,930.04 crore, up 5.5 percent.
On a half-yearly basis, total premium income grew 5.14 percent to Rs 2,45,680 crore, LIC management told reporters Thursday. “From a business perspective, we have once again demonstrated the successful implementation of its strategy pertaining to both product and channel diversification, which we have been pursuing since our listing,” said R Doraiswamy, chief executive and managing director.
He added the non-par APE (annualised premium equivalent) share of the individual business rose to 36.31 percent, up from 26.31 percent in the same period last year. Doraiswamy said the bancassuance and alternate channels’ share of individual new business premium grew by 67.6 percent while the value of new business (VNB) rose 12.3 percent to Rs 5,111 crore, with a VNB margin of 17.6 percent.
Net NPA for policyholders' fund came down to Rs 3.94 crore, as against Rs 6.17 percent, showing robust asset quality. LIC's first year premium stood at Rs 10,884 crore compared to Rs 7,566 crore in Q1 FY26 and Rs 11,245 crore in the year ago period. The renewal premium stood at Rs 65,320 crore in the quarter under review, up from Rs 60,179 crore in Q1 and Rs 62,236 crore in Q2 and the single premium stood at Rs 50,882 crore, witnessing a sequential drop from Rs 52,008 crore but up from Rs 46,997 crore.
Group business APE increased 20.30 percent to Rs 11,864 crore while the overall APE increased by 3.60 percent to Rs 29,034 crore. LIC’s expense ratio declined by 146 bps to 11.28 percent during the same period, reflecting improved cost efficiency. LIC’s assets under management rose to Rs 57,22,896 crore as of September from Rs 55,39,516 crore a year earlier, marking a annualised growth of 3.31 percent. The solvency ratio increased to 2.13x, from 1.98x, while asset quality for policyholders’ funds improved. Overall expense ratio reduced by 146 bps to 11.28 percent from 12.74 percent.