R Doraiswamy, CEO & M D, LIC, said,“FY 2025-26 has been a satisfying year for us, with strong overall growth across every business vertical leading to record performance metrics. We have achieved a Non Par share on APE basis in our individual business of more than 35 per cent and our value of new business(VNB) margin is more than 21 per cent for the year. Our VNB growth has been in excess of 41 per cent.”
Mumbai:Driven by robust premium growth and higher investment income, State-owned Life Insurance Corporation of India(LIC) reported a 23 per cent rise in quarterly profit to Rs 23,420 crore ($2.43 billion) for the three months ended March 31, up from Rs 19,013 crore a year earlier on Thursday, supported by a rise in premium collections and investment income.
The corporation’s board of directors, which met on Thursday to apporove the results, has declared a dividend of Rs 10 per share for the financial year 2025-26.
The board has fixed May 29, as the record date for the purpose of ascertaining the eligibility of members of the corporation for bonus equity shares in the proportion of 1:1 new fully paid-up equity share of Rs10/- each for every one existing fully paid-up equity share of Rs 10 each.
LIC’s net premium income rose 12 per cent year-on-year to Rs 1.65 lakh crore in Q4FY26 from Rs1.48 lakh crore in the year ago period, supported by healthy expansion in renewal and single premium business.
Investment income, a key earnings contributor, climbed around 17per cent to Rs 1.09 lakh crore in Q4FY26 compared with Rs 93,443 crore in the corresponding quarter last year.
LIC’s income from first-year premium also improved to Rs12,970 crore in the latest January-March quarter against Rs11,069 crore in the same period of the preceding fiscal year.
Income from renewal premiums in the reporting period increased to Rs 81,933 crore compared to Rs79,138 crore a year ago.
Single premium collections saw a sharp 22 per cent jump to Rs 70,119 crore during the quarter.
The insurer reported a total surplus of Rs 89,058 crore in Q4FY26 against Rs 77,053 crore a year ago.
On the expense front, management expenses increased to Rs 20,699 crore in Q4FY26 from Rs 16,526 crore in Q4FY25. Employee remuneration and welfare expenses rose significantly to Rs 8,891 crore, while other operating expenses increased to Rs 4,074 crore in the quarter.
LIC’s solvency ratio strengthened to 2.35 as of March 31, 2026, up from 2.11 a year earlier, remaining well above the regulatory threshold. The expense management ratio improved to 12.52 per cent from 11.15 per cent.
However, persistency ratios witnessed some pressure. The 13th month persistency ratio slipped to 67.77 per cent from 68.62 per cent , while the 61st month persistency ratio declined to 54.13 per cent compared with 58.54 per cent a year earlier.
The Assets Under Management (AUM) increased to Rs.57,29,396 crore as on March 31st 2026 as compared to Rs. 54,52,297 crore on March 31st, 2025 registering an increase of 5.08 per cent year on year The Yield on Investments on policyholders funds excluding unrealized gains was 8.92 per cent in FY 26 as against 8.65 per cent in FY 25.
The amount of bonus allocated to policyholders is Rs.59,726 crore for the financial year 2025-26 as against Rs. 56,190 crore for the previous financial year 2024-25.
FY 25-26
The Value of New Business (VNB) for FY 26 was Rs.14,179 crore as compared to Rs.10,011 crore for FY 25, registering a growth of 41.63 per cent.The Net VNB margin for the year increased by 360 bps to 21.2 per cent as compared to 17.6 p[er cent for FY 25.
The corporation’s Indian embeded value (IEV) has increased by Rs 12,309 crore from March 2025 to March 2026,highlighting a growth of 1.58 per cent.
R Doraiswamy, CEO & M D, LIC, said,“FY 26 has been a satisfying year for us, with strong overall growth across every business vertical leading to record performance metrics. We have achieved a Non Par share on APE basis in our individual business of more than 35 per cent and our value of new business(VNB) margin is more than 21 per cent for the year. our VNB growth has been in excess of 41 per cent.”
“Our strategy of channel diversification has been successful with our Banca and Alternate Channels (BAC) having recorded a growth rate of more than 45 per cent with premium from BAC exceeding Rs5,000 crore in FY26.
“With regulatory guidance, we are preparing to implement the Indian Accounting Standards (IndAS) norms and are confident about implementing within allowed regulatory time frames.” he informed.
“We are convinced about continuing our growth journey and crossing new milestones in the coming years. As we navigate the insurance markets of India, as the leading life insurance company, in the year 2026, we remain immensely grateful to our almost 200 million policyholders for their continued trust spanning seven decades,” highlighted Doraiswamy.
The total premium Income for FY 26 was Rs5,35,984 crore as compared to Rs 4,88,148 crore for FY25, registering a growth of 9.80 per cent. The Individual New Business Premium for the FY 26 increased to Rs. 67,676 crore from Rs 62,495 crore for the comparable period of previous year, registering an increase of 8.29 per cent.
The Individual Renewal Premium income for the year ended March 31st, 2026 was Rs.2,71,699 crore as compared to Rs.2,56,541 crore for the year ended March 31st, 2025, registering an increase of 5.91 per cent.
LIC’s total Individual Business Premium for FY 26 increased to Rs.3,39,375 crore from Rs.3,19,036 crore in FY 25, registering an increase of 6.37 per cent.
The Group Business total premium income for FYU 26 was Rs 1,96,609 crore as compared to Rs 1,69,112 crore in FY 25 registering an increase of 16.26 per cent.
A total of 1,84,41,175 policies were sold in the individual segment during the year ended March 31st, 2026 as compared to 1,77,82,975 policies sold during the year ended March 31st, 2025, registering an increase of 3.70%.