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Life Insurance Corporation of India (LIC), the country's largest insurer, reported a nearly 20% rise in consolidated net profit to Rs 12,114.78 crore for the September quarter on Thursday, supported by strong growth in premium income and higher investment earnings. The state-owned insurer had reported a net profit of Rs 10,098 crore in the corresponding quarter last year. However, profit declined 11% sequentially from Rs 13,584 crore in the June quarter.
Net premium income increased 16.2% year-on-year to Rs 1.47 lakh crore from Rs 1.26 lakh crore in the September quarter of FY26. It rose 15% sequentially from Rs 1.27 lakh crore.
The growth in premium income was largely driven by a sharp increase in single-premium collections, reflecting higher contributions from policies where customers pay the entire premium upfront.
Single-premium income surged 34% to Rs 68,425 crore from Rs 50,882 crore a year earlier. Renewal premium income increased 5% to Rs 68,718 crore from Rs 65,320 crore in the same quarter last year. However, first-year premium income declined 4% to Rs 10,484 crore from Rs 10,884 crore.
LIC also reported an increase in investment income during the quarter, providing additional support to profitability.
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Net investment income in the shareholders' account increased to Rs 2,855 crore from Rs 2,066 crore a year earlier, representing a rise of about 38%.
Total income in the shareholders' account increased 11% to Rs 10,527 crore from Rs 9,454 crore. Meanwhile, the insurer's income from investments in the policyholders' account stood at Rs 1.15 lakh crore, compared with Rs 1.12 lakh crore in the year-ago quarter, an increase of around 2.2%.
The company reported a surplus of Rs 10,379 crore in the policyholders' account, compared with Rs 9,503 crore a year earlier. The increase in investment income and policyholder surplus contributed to the company's overall financial performance during the quarter.
LIC's benefits paid, including claims and other policyholder payouts, increased to Rs 1.34 lakh crore from Rs 1.06 lakh crore in the corresponding quarter last year.
Expenses of management rose to Rs 15,143.38 crore from Rs 13,908 crore, an increase of 9%. Net commission expenses increased to Rs 6,089 crore from Rs 5,807 crore a year earlier.
LIC's solvency ratio improved to 2.35 as of September 2026, from 2.13 a year earlier. However, the ratio declined sequentially from 2.42 in the June quarter. The insurer's expense of management ratio improved to 10.26% from 12.05% a year earlier, reflecting better cost efficiency.
The 13th-month persistency ratio declined to 67.67% from 68.19% a year earlier, while the 25th-month ratio improved marginally to 63.01% from 62.63%.
The insurer's investment yield, excluding unrealised gains, declined to 9.04% in the September quarter from 9.33% a year earlier. However, including unrealised gains, the yield increased to 4.10% from 2.07%.
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