New Delhi, August 6:The Life Insurance Corporation of India (LIC) reported a 22.8 per cent year-on-year increase in its net profit to Rs 13,492 crore for the April-June quarter of the current financial year, driven by healthy premium growth, improved profitability in new business, and higher investment income.

The state-owned insurer had posted a net profit of Rs 10,987 crore during the corresponding quarter of the previous fiscal.

LIC's net premium income rose 7 per cent to Rs 1.27 lakh crore during the quarter, while other income surged to Rs 635 crore from Rs 130 crore in the year-ago period.

A major highlight of the quarter was the sharp improvement in the insurer's Value of New Business (VNB), which climbed 61 per cent to Rs 3,136 crore. The VNB margin also expanded significantly by 750 basis points to 22.9 per cent, compared to 15.4 per cent in the same quarter last year, reflecting a better product mix and stronger profitability from new business.

The insurer also recorded strong growth in first-year premium income, which increased 22 per cent year-on-year to Rs 9,217 crore, indicating robust demand for new policies.

According to an exchange filing, LIC's total income rose to Rs 2,37,848 crore during the first quarter from Rs 2,22,864 crore in the corresponding period of the previous financial year.

The company's financial position also strengthened during the quarter, with its solvency ratio improving to 2.42 from 2.17 a year earlier, remaining well above the regulatory requirement.

Meanwhile, LIC's total expenses increased to Rs 2,25,573 crore during the April-June period, compared with Rs 2,11,928 crore in the same quarter of the previous fiscal.