Key Takeaways:
- LIC Q4 Profit Jumps 23% to ₹23,420 crore on higher premiums.
- The board approved a ₹10 dividend and fixed a 1:1 bonus share record date.
- Assets under management grew to over ₹57 lakh crore despite a dip in market share.
Life Insurance Corporation of India reported a more than 23% rise in standalone net profit for the March quarter, helped by higher premium collections and investment income, while its board approved a final dividend of ₹10 per equity share.
The insurer posted a net profit of ₹23,420.43 crore for the fourth quarter ended March 31, compared with ₹19,012.79 crore a year earlier. Total income rose more than 14% to ₹2,76,827.17 crore from ₹2,41,625.02 crore in the same period last year.
Net premium income increased to ₹1,64,691.21 crore from ₹1,47,585.56 crore, while income from investments climbed to ₹1,09,022.04 crore from ₹93,132.67 crore.
For the full fiscal year 2025-26, LIC Q4 Profit Jumps 19.25% increase in net profit to ₹57,419 crore, compared with ₹48,151 crore in the previous year. Total income rose to ₹9,73,288.26 crore from ₹8,84,148.22 crore.
Total premium income for the year grew nearly 10% to ₹5,35,984 crore from ₹4,88,148 crore.
LIC Targets Growth Despite Rising Competition
Chief Executive Officer and Managing Director R. Doraiswamy said the insurer achieved record performance across business segments during the fiscal year.
“With strong overall growth across every business vertical leading to record performance metrics, 2025-26 has been a satisfying year,” Doraiswamy said.
He said LIC achieved a non-par share on an annualized premium equivalent basis of more than 35% in individual business and recorded a value of new business margin above 21% for the year.
LIC Q4 Profit Jumps as the insurer’s value of new business, or VNB, rose 41.63% to ₹14,179 crore. Assets under management increased 5.08% to ₹57,29,396 crore.
LIC’s market share, measured by first-year premium income, stood at 56.66% in FY26, slightly lower than 57.05% in FY25.
Responding to questions on India allowing 100% foreign direct investment in the insurance sector, Doraiswamy said increased foreign participation would intensify competition but also expand the overall market.
“Markets will grow, and we will continue to grow,” he said.
Board Fixes Record Dates for Dividend, Bonus Shares
As LIC Q4 Profit Jumps, LIC’s board declared a final dividend of ₹10 per equity share for FY26 and fixed June 25 as the record date to determine shareholder eligibility.
The insurer also set May 29 as the record date for its previously announced 1:1 bonus equity share issue.
Doraiswamy said geopolitical tensions in West Asia could affect savings and insurance demand across sectors.
“We are in tough times,” he said, adding that the company would continue working toward double-digit growth in new premium collections while expecting renewal premium growth to remain steady.
LIC said its channel diversification strategy contributed to growth during the year. Premium collections through banca and alternate channels grew more than 45%, exceeding ₹5,000 crore in FY26.
The insurer also said it is preparing to implement Indian Accounting Standards, or IndAS, within regulatory timelines.
Visit Business Viewpoint Magazine to read more.
