New Delhi, May 21: Life Insurance Corporation of India (LIC) on Thursday reported a 23 per cent year-on-year increase in consolidated net profit to Rs 23,467 crore for the fourth quarter of FY26, supported by growth in premium income and stronger investment earnings.
The state-owned insurer had posted a consolidated net profit of Rs 19,039 crore in the corresponding quarter of the previous financial year.
LIC’s board recommended a final dividend of Rs 10 per equity share of face value Rs 10 each, equivalent to Rs 20 per share on a pre-bonus issue basis.
The insurer fixed June 25 as the record date for determining shareholder eligibility for the dividend payout, while May 29 has been set as the record date for the proposed 1:1 bonus issue. The deemed allotment date for bonus shares is June 1, 2026.
Net premium income during the January–March quarter rose 12 per cent to Rs 1.65 lakh crore from Rs 1.48 lakh crore in the year-ago period, driven by growth in renewal and single premium business.
First-year premium income increased 17 per cent to Rs 13,009 crore during the quarter, compared with Rs 11,103 crore a year earlier.
Renewal premium income also recorded growth, rising 14 per cent to Rs 82,233 crore from Rs 79,425 crore in the corresponding quarter last year.
Income from investments, a key earnings contributor for LIC, climbed to Rs 1.09 lakh crore during the quarter from Rs 93,443 crore a year ago, registering growth of nearly 17 per cent.
The insurer reported a total surplus of Rs 89,058 crore during Q4 FY26 compared with Rs 77,053 crore in the same quarter of FY25, while surplus after share of profit from associates and minority interest stood at Rs 24,964 crore against Rs 20,271 crore.
However, operating expenses increased during the quarter. Management expenses rose to Rs 20,699 crore from Rs 16,526 crore a year earlier.
Employee remuneration and welfare expenses increased sharply to Rs 8,891 crore from Rs 5,943 crore, while other operating expenses rose to Rs 4,074 crore from Rs 2,848 crore in the year-ago period.
LIC’s solvency ratio improved to 2.35 as of March 31, 2026, compared with 2.11 a year earlier, remaining comfortably above regulatory requirements.
The insurer reported a 13th-month persistency ratio of 67.77 per cent, marginally lower than 68.62 per cent recorded a year ago, while the 61st-month persistency ratio stood at 54.13 per cent compared with 58.54 per cent.
For the full financial year FY26, LIC reported profit after tax of Rs 57,453 crore, up 19 per cent from Rs 48,320 crore in FY25.
Net premium income for the year increased 10 per cent to Rs 5.38 lakh crore from Rs 4.90 lakh crore in the previous fiscal.
Policyholders’ fund excluding linked assets stood at Rs 53.68 lakh crore as of March 31, 2026, compared with Rs 51.64 lakh crore a year earlier, while shareholders’ investments rose to Rs 1.5 lakh crore from Rs 1.03 lakh crore.
