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Informist, Thursday, Nov. 6, 2025

 

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--LIC assets under management at INR 57.23 tln as on Sept 30, up 3.3% on yr 
--LIC Jul-Sept first year premiums INR 108.36 bln vs INR 112.01 bln yr ago 
--LIC 61st mo persistency 55.12% on Sept 30 vs 58.31% qtr ago, 54.76% yr ago 
--LIC 13th mo persistency 68.19% on Sept 30 vs 70.90% qtr ago, 68.17% yr ago 
--LIC solvency ratio at 2.13 times as on Sept 30 vs 1.98 times year ago 
--LIC Apr-Sept net premium income INR 2.46 tln vs INR 2.34 tln year ago 
--LIC Apr-Sept net profit INR 210.40 bln vs INR 180.82 bln year ago 
--LIC Jul-Sept net profit INR 100.53 bln vs INR 76.21 bln year ago 
--LIC Jul-Sept net premium income INR 1.26 tln vs INR 1.20 tln year ago 
--LIC Jul-Sept net profit INR 100.53 bln

 

By Krity Ambey

 

NEW DELHI – A fall in net commissions as well as in employee remuneration and welfare expenses, coupled with a modest rise in net premium income, helped Life Insurance Corp. of India post a 32% jump in net profit for the September quarter to INR 100.53 billion. Sequentially, however, the state-owned life insurer's bottom line was down 8.5%.

 

The company's net commission fell 12% on year to INR 57.72 billion during the reporting quarter. The employee remuneration and welfare expenses fell 3% to INR 75 billion. Other operating expenses were also down 3% on year. As such, the expenses of management were down 6.5% on year at INR 152.34 billion.

 

LIC's net premium income for the reporting quarter rose 5.5% on year to INR 1.265 trillion. The company's total income for the quarter was up a little over 4%, at INR 2.396 trillion. But the company's first-year premium income fell a little over 3% to INR 108.36 billion. LIC released its financial results for the September quarter after market hours Thursday. The company's shares ended 1% lower at INR 896.10 on the National Stock Exchange.

 

LIC's assets under management increased a little over 3% on year to INR 57.229 trillion as on Sept. 30. The solvency ratio of the country's largest life insurer was 2.13 times at the end of September, higher than the regulatory requirement of 1.50 times. The metric was 1.98 times a year ago and 2.17 times as of Jun. 30.

 

In terms of annualised premium, the 13th-month persistency ratio, which tracks how long customers stay with their policies, inched to 68.19% as of Sept. 30 from 68.17% a year ago, but was down from 70.90% as of Jun. 30. The 61st month persistency ratio also rose to 55.12% as of Sept. 30 from 54.76% a year ago, but it, too, dropped from 58.31% as of Jun. 30.

 

LIC, in its press release, said the value of new business for Apr-Sept was INR 51.11 billion, but it did not give the value of new business for Jul-Sept in its financial result for the quarter. The metric was INR 19.44 billion in the June quarter. A back-of-the-envelope calculaton shows that the insurer's value of new business was INR 31.67 billion in the September quarter, nearly 8% higher than a similarly calculated value of new business of INR 29.41 billion in the corresponding quarter a year ago.

 

LIC's net profit for Apr-Sept was INR 210.40 billion, up a little over 16%. The company's net premium income rose 5% to INR 2.457 trillion in the first half of the financial year. At INR 51.11 billion, the value of new business for the period was up 12%. LIC's net value of new business margin expanded 140 basis points to 17.6% in Apr-Sept.  End

 

Edited by Rajeev Pai

 

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