LIC profit surges 19% YoY to Rs 57,419 cr in FY26, recommends Rs 10 dividend

Life Insurance Corporation of India reported a 19.25 per cent rise in Profit After Tax (PAT) to Rs 57,419 crore for the financial year ended March 31, 2026, compared to Rs 48,151 crore in the previous financial year.

Life Insurance Corporation of India reported a 19.25 per cent rise in Profit After Tax (PAT) to Rs 57,419 crore for the financial year ended March 31, 2026, compared to Rs 48,151 crore in the previous financial year. The company's Board of Directors also recommended a final dividend of Rs 10 per equity share of Rs 10 each for FY26, equivalent to Rs 20 per equity share.

It means that LIC has recommended a final dividend of Rs 10 per share for shareholders for FY26. The company also recently announced a 1:1 bonus issue, which means shareholders will get one extra share for every one share they hold. So, the Rs 10 dividend after the bonus issue is equivalent to Rs 20 per share on the old shareholding basis before the bonus shares were added. According to LIC, the total premium income for FY26 increased by 9.80 per cent to Rs 5,35,984 crore from Rs 4,88,148 crore in FY25.

The insurer said its Individual New Business Premium rose by 8.29 per cent to Rs 67,676 crore during FY26, while Individual Renewal Premium income increased by 5.91 per cent to Rs 2,71,699 crore. LIC's total Individual Business Premium grew by 6.37 per cent to Rs 3,39,375 crore during the year under review.

The company also reported strong growth in its Group Business segment. Total Group Business Premium Income increased by 16.26 per cent to Rs 1,96,609 crore in FY26 compared to Rs 1,69,112 crore in FY25. In terms of market share measured by First Year Premium Income (FYPI), LIC continued to remain the market leader in the Indian life insurance sector with an overall market share of 56.66 per cent in FY26.

The insurer held a market share of 36.60 per cent in Individual Business and 70.11 per cent in Group Business during the financial year. LIC said a total of 1,84,41,175 (1.84 crore) policies were sold in the individual segment during FY26, registering a growth of 3.70 per cent compared to the previous year.

The company's Value of New Business (VNB) increased sharply by 41.63 per cent to Rs 14,179 crore, while Net VNB Margin improved by 360 basis points to 21.2 per cent. LIC also reported significant growth in its Non-Par business. Individual Business Non-Par Annualized Premium Equivalent (APE) increased by 43.78 per cent to Rs 15,214 crore.

The share of Non-Par products within Individual Business rose to 35.11 per cent in FY26 compared to 27.69 per cent in FY25. Assets Under Management (AUM) increased by 5.08 per cent year-on-year to Rs 57,29,396 crore as of March 31, 2026.

The company's solvency ratio improved to 2.35 from 2.11 a year ago, while the overall expense ratio reduced by 51 basis points to 11.91 per cent. LIC also announced a bonus allocation of Rs 59,726 crore to policyholders for FY26. (ANI)