New Delhi, Nov 6 (PTI) State-owned insurer LIC on Thursday reported a 32 per cent jump in net profit to Rs 10,053 crore for the second quarter ended September 30, aided by a lower commission outgo.

The country's biggest insurer had reported a net profit of Rs 7,621 crore in the year-ago period.

The total income improved to Rs 2,39,614 crore in the latest September quarter compared to Rs 2,29,620 crore in the year-ago period, LIC said in a regulatory filing.

Its net premium income increased to Rs 1,26,479 crore in the second quarter of the current fiscal from Rs 1,19,901 crore in the same period a year ago.

During the quarter, renewal premium moved up to Rs 64,996 crore as against Rs 61,910 crore in the same period a year ago.

However, first year premium during the period fell to Rs 10,836 crore from Rs 11,201 crore in the second quarter of last financial year.

The decline in first year premium was witnessed despite the government exempting individual life insurance premium from Goods and Services Tax (GST) of 18 per cent effective September 22.

"We at LIC are very optimistic about the positive impact of the GST changes announced for the insurance industry by the Government of India during September 2025. It is our firm belief that these changes are in the best interest of customers and will lead to further accelerated growth of the life insurance industry in India," the company's CEO and MD R Doraiswamy said.

LIC has ensured that all intended benefits of GST changes are passed onto the customers, he said.

During the quarter, overall market share of LIC slipped below 60 per cent to 59.41 per cent for half year ended September 30, 2025 as compared to 61.07 per cent of first half of last financial year. Asked about the decline in market share, Doraiswamy said the focus of LIC would be on profitability and margin growth.

As far as commission outgo is concerned, it moderated to Rs 5,772 crore in the second quarter from Rs 6,542 crore in the same period a year ago.

The total expenses rose to Rs 2,30,160 crore in the quarter against Rs 2,22,366 crore in the same period a year ago..

The solvency ratio increased to 213 per cent from 198 per cent at the end of September 30, 2024.

At the same time, Gross NPAs came down to 1.34 per cent from 1.72 per cent at the end of the second quarter of the previous year.

For the first half ended September 2025, LIC recorded profit growth of 16.36 per cent to Rs 21,040 crore compared to Rs 18,082 crore for the half year ended September 30, 2024, the insurer said in a statement.

From a business perspective during the first half of this year (FY 2025-26), he said, LIC has once again demonstrated the successful implementation of its strategy pertaining to both product and channel diversification, that we have been pursuing since our listing.

The Non Par Annualized Premium Equivalent (APE) share of Individual business for H1 FY26 was 36.31 per cent as compared to 26.31 per cent for the similar period of previous year.

Total premium during the first half rose to Rs 1,50,715 crore from Rs 1,44,696 crore in the same period a year ago.

"While we expand our overall profitability through diversified product mix and channel mix, we are also working towards optimising costs, and for H1 FY26 our overall expense ratio has decreased by 146 bps to 11.28 per cent," he said.

As the leader of the life insurance industry in India, he said, "We are aware of our responsibility to enhance both insurance penetration and density and continue to focus our efforts and channel our energies into achieving Insurance for All by 2047," he said. PTI DP DP MR

GST exemption for individual life insurance premiums spurs insurer expectation of customer benefit and industry growth. LIC reported a significant quarterly net profit increase, citing lower commission outgo, higher net premium income and improved solvency and asset quality. Despite a fall in first year premium, the company notes the Government's GST exemption for individual life insurance premiums effective September 22, has been passed on to customers and is expected to support industry growth; management emphasizes product and channel diversification, profitability focus and a reduced expense ratio.