InsuranceStocks – LIC Posts Strong FY26 Profit and Premium Growth
InsuranceStocks – Life Insurance Corporation of India delivered a solid financial performance for the fiscal year ending March 31, 2026, reporting a notable rise in profit along with steady business expansion across multiple segments. The state-run insurer posted a Profit After Tax of Rs 57,419 crore for FY26, reflecting an increase of 19.25 per cent compared to Rs 48,151 crore recorded in the previous financial year.
The company’s board has also proposed a final dividend of Rs 10 on every equity share with a face value of Rs 10 for the financial year. Earlier, LIC had declared a 1:1 bonus issue, under which shareholders are entitled to receive one additional share for every existing share held. Following the bonus adjustment, the declared dividend effectively translates to Rs 20 per share based on the earlier shareholding structure.
Premium Collection Registers Healthy Increase
LIC reported a rise in overall premium collections during FY26, supported by growth in both individual and group insurance categories. Total premium income climbed to Rs 5,35,984 crore, marking a growth of 9.80 per cent over Rs 4,88,148 crore reported in FY25.
The insurer’s individual new business premium reached Rs 67,676 crore during the year, registering an increase of 8.29 per cent. Meanwhile, renewal premium income from individual policyholders improved by 5.91 per cent to Rs 2,71,699 crore.
Combined individual business premium collections stood at Rs 3,39,375 crore, showing growth of 6.37 per cent compared to the previous financial year.
Group Business Segment Supports Revenue Growth
LIC also witnessed strong momentum in its group insurance operations. Premium income from the group business segment rose sharply by 16.26 per cent during FY26 and touched Rs 1,96,609 crore, compared to Rs 1,69,112 crore in FY25.
The company maintained its dominant position in India’s life insurance industry based on First Year Premium Income. During FY26, LIC retained an overall market share of 56.66 per cent.
In the individual insurance category, the insurer held a market share of 36.60 per cent, while its presence remained particularly strong in group insurance, where it accounted for 70.11 per cent of the market.
Policy Sales and Business Value Improve
According to company data, LIC sold more than 1.84 crore individual policies during the financial year under review. The figure represents a growth of 3.70 per cent compared to the previous year, indicating continued demand for life insurance products across the country.
The insurer also reported significant improvement in its Value of New Business (VNB), a key profitability indicator in the insurance sector. VNB surged by 41.63 per cent to Rs 14,179 crore during FY26.
At the same time, the Net VNB Margin improved by 360 basis points and reached 21.2 per cent, highlighting better operational efficiency and improved profitability from new business generation.
Non-Par Products Record Strong Expansion
LIC’s non-participating product portfolio also recorded strong growth during the year. The Annualized Premium Equivalent (APE) from individual non-par business increased by 43.78 per cent to Rs 15,214 crore.
The contribution of non-par products within LIC’s individual business portfolio expanded considerably. Their share increased to 35.11 per cent in FY26 from 27.69 per cent reported in FY25, reflecting a shift in customer preference toward such offerings.
Financial Stability Indicators Strengthen
The insurer’s Assets Under Management increased to Rs 57,29,396 crore as of March 31, 2026, representing a year-on-year growth of 5.08 per cent.
LIC also reported improvement in its financial stability metrics. The solvency ratio strengthened to 2.35 from 2.11 a year earlier, indicating stronger capital adequacy. In addition, the company reduced its overall expense ratio by 51 basis points to 11.91 per cent during the fiscal year.
Alongside shareholder benefits, LIC announced a bonus allocation of Rs 59,726 crore for policyholders for FY26, reinforcing its long-standing focus on customer returns and policyholder participation.