Noida, May 21 (APAC Media): State-owned Life Insurance Corporation (LIC) on Thursday reported a 19.25% year-on-year rise in its consolidated net profit to Rs 57,419 crore for the fourth quarter ended March 2026, compared with Rs 48,151 crore in the corresponding period of the previous year.
The total premium income for the year ended March 31, 2026, stood at Rs 5,35,984 crore, compared with Rs 4,88,148 crore in the previous year ended March 31, 2025, registering a growth of 9.80%.
The Board of Directors has recommended a final dividend of Rs 10 per equity share of Rs 10 each (equivalent to Rs 20 per equity share on a pre-bonus issue basis) for the financial year 2025–26, subject to approval of shareholders at the 5th Annual General Meeting of the corporation.
However, a total of 18,441,175 policies were sold in the individual segment during the year ended March 31, 2026, compared with 17,782,975 policies sold in the corresponding period ended March 31, 2025, registering an increase of 3.70 %.
“Financial Year 2025–26 has been a satisfying year for LIC, marked by strong overall growth across all business verticals, leading to record performance metrics. We have achieved a non-per share on an APE basis in our individual business of more than 35 % and a VNB margin of over 21 %, supported by strong channel diversification and robust growth in our Banca and Alternate Channels.” R. Doraiswamy, CEO & MD, LIC, said.
Performance Update for the Year Ended March 31, 2026 (FY26)
- Non-par APE share within individual businesses stood at 35.11 % in FY26, compared with 27.69 % in FY25.
- Value of New Business (VNB) rose 41.63 % to Rs 14,179 crore, while VNB margin increased by 360 basis points to 21.2 %.
- New business premium income (individual) increased 8.29 % to Rs 67,676 crore.
- Total group business premium income grew 16.26 % to Rs 196,609 crore, while total premium income rose 9.80 % to Rs 535,984 crore.
- Indian Embedded Value (IEV) increased 1.58 % to Rs 78,918.5 crore.
- Share of bancassurance and alternate channels in individual new business premium rose to 7.51 % in FY26 from 5.59 % in FY25.
- Assets under management (AUM) increased 5.08 % to Rs 57,29,396 crore.
- The solvency ratio improved to 2.35 from 2.11, while the expense ratio declined by 51 basis points to 11.91 %.
- Bonus to policyholders stood at Rs 59,726 crore.
“VNB growth has exceeded 41 %, and BAC premiums have crossed Rs 5,000 crore in FY26. We have also announced a 1:1 bonus issue to reward shareholders. We remain confident of continuing our growth journey, preparing to implement Ind AS within regulatory timelines, and are grateful to our nearly 200 million policyholders for their continued trust over seven decades.” R Doraiswamy added.
The overall expense ratio for the year ended March 31, 2026, declined by 51 basis points to 11.91 %, compared with 12.42 % in the previous year ended March 31, 2025.
The yield on investments on policyholders’ funds, excluding unrealised gains, stood at 8.92 % for the year ended March 31, 2026, as against 8.65 % in the corresponding period of the previous year.
The amount of bonus allocated to policyholders stood at Rs 59,726 crore for FY26, compared with Rs 56,190 crore in FY25.
Disclaimer: Views expressed are those of experts and do not reflect APAC Media. This is for informational purposes only, not financial advice. We are not responsible for investment decisions. Please consult a qualified financial advisor before investing.
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