The yield on investments on policyholders funds, excluding unrealised gains, was 8.92% for the year ended March 2026 as against 8.65% for year ended March 2025.
State-run Life Insurance Corporation (LIC) on Thursday reported a 23.18% rise in net profit for the fourth quarter of financial year 2026 (Q4FY26) against the same period last year, supported by a healthy increase in premium income and investment income.
The leading insurance firm’s profit rose to Rs 23,420.43 crore in Q4FY26, up from Rs 19,012 it had reported during the same period a year ago.
In FY26, the insurer’s net profit grew 19.25% to a record Rs 57,419 crore, compared to Rs 48,151 crore in FY25.
Net premium income of the insurer grew 12% year-on-year to Rs 1.65 lakh crore in the quarter, while net investment income rose 17% to Rs 1.09 lakh crore.
The investment income for FY26 was up nearly 10% on year at Rs 4.32 lakh crore.
The assets under management (AUM) of the insurance major for the year stood at Rs 57.29 lakh crore, up 5.08% from Rs 54.52 lakh crore a year ago.
LIC’s board recommended a final dividend of Rs 10 per share for FY26, subject to shareholders’ approval.
Story continues below this ad
The amount of bonus allocated to policyholders was Rs 59,726 crore in FY26 against Rs 56,190.24 crore for FY25.
The state-run insurer has fixed May 29 as the record date for the 1:1 bonus issue.
“Financial year 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% and our VNB margin is more than 21% for the year,” LIC MD and CEO R Doraiswamy said.
LIC sold 1.84 crore policies in the individual segment during the year ended March 2026 as compared to 1.77 crore policies sold during the year ended March 31 2025, registering an increase of 3.70 per cent.
Story continues below this ad
The total premium income for the year ended March 2026 was Rs 535,984 crore as compared to Rs 488,148 crore for the year ended March 2025, registering a growth of 9.80%.
“Our strategy of channel diversification has been successful with our Banca and Alternate Channels (BAC) having recorded a growth rate of more than 45% with premium from BAC exceeding Rs 5,000 crore in FY26. VNB growth has been in excess of 41%. Also recently, we have announced a bonus issue in the ratio of 1:1 to reward our shareholders,” he said.
With regulatory guidance, LIC is preparing to implement the Indian Accounting Standards (IndAS) norms and expressed confidence about implementing within allowed regulatory time frames.
“We are convinced about continuing our growth journey and crossing new milestones in the coming years,” Doraiswamy said.
Story continues below this ad
The yield on investments on policyholders funds, excluding unrealised gains, was 8.92% for the year ended March 2026 as against 8.65% for year ended March 2025.
The group business total premium income for year ended March 2026 was Rs 196,609 crore as compared to Rs 169,112 crore for the year ended March 2025, registering an increase of 16.26%.
