A 23 percent year-on-year increase in consolidated net profit to Rs 23,467 crore was reported by Life Insurance Corporation of India (LIC) on Thursday for the fourth quarter of FY26. The increase was backed by growth in premium income and improved investment earnings.
In the same quarter of the prior fiscal year, the state-owned insurer had reported a combined net profit of Rs 19,039 crore.
In their final dividend recommendation, the LIC board settled on a payout of Rs 10 for every equity share with a face value of Rs 10, or Rs 20 before the bonus issuance.
The record date for the planned 1:1 bonus issuance is May 29, and the record deadline for establishing shareholder eligibility for the dividend payout is June 25, according to the insurer. On June 1, 2026, the bonus shares will be considered allotted.
Increases in both renewal and single premium business drove a 12% year-over-year increase in net premium income for the January–March quarter, which came to Rs 1.65 lakh crore.
During the quarter, first-year premium income climbed by 17% to Rs 13,009 crore from Rs 11,103 crore the previous year.
Additionally, renewal premium income increased, going up 14% to Rs 82,233 crore from Rs 79,425 crore in the same quarter last year.
Investment income, a significant source of LIC’s profits, increased by about 17% year over year, reaching Rs 1.09 lakh crore in the quarter from Rs 93,443 crore the previous year.
Overall, the insurer’s Q4 FY26 surplus was Rs 89,058 crore, up from Rs 77,053 crore in Q4 FY25. Substantiating the surplus after share of profit from affiliates and minority interest was Rs 24,964 crore, up from Rs 20,271 crore.
But operational costs went up in the quarter. Management spending increased to 20,699 crore rupees from 16,526 crore rupees the previous year.
Payroll and benefits spending jumped dramatically to 8,891 crore rupees from 5,943 crore rupees a year ago, while operating expenditures as a whole grew to 4,074 crore rupees from 2,848 crore rupees.
At 2.35 as of March 31, 2026, LIC’s solvency ratio was much higher than the required minimum of 2.11 a year earlier.
While the 61st-month persistency ratio was 54.13% compared to 58.54% a year earlier, the insurer recorded a 13th-month persistency ratio of 67.77%, which is somewhat lower than 68.62% recorded a year ago.
After taxes, LIC’s profit for the full fiscal year FY26 was Rs 57,453 crore, up 19% from FY25’s total of Rs 48,320 crore.
From the previous fiscal year, net premium income was 4.90 lakh crore, which grew to 5.38 lakh crore, a 10% rise.
As of March 31, 2026, the policyholders’ fund (excluding connected assets) was Rs 53.68 lakh crore, up from Rs 51.64 lakh crore a year earlier. Shareholder investments increased to Rs 1.5 lakh crore from Rs 1.03 lakh crore.
Image Credit: Deccan Herald
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