Life Insurance Corporation (LIC) of India ended FY26 on a strong note, with profit after tax (PAT) rising 19.25% year-on-year (YoY) to ₹57,419 crore, driven by higher premium income, strong growth in non-par products, and improving margins. The country’s largest life insurer also announced its maiden 1:1 bonus issue and a final dividend of ₹10 per share for FY26.

The PSU insurer reported total premium income of ₹5,35,984 crore for FY26, up 9.8% from ₹4,88,148 crore in the previous financial year, according to its exchange filing.

The value of new business (VNB) jumped 41.63% to ₹14,179 crore, while VNB margin improved 360 basis points to 21.2%, reflecting a favourable product mix and higher contribution from non-par products.

LIC’s individual non-par annualised premium equivalent (APE) rose 43.78% to ₹15,214 crore during FY26, increasing the non-par share in the individual business mix to 35.11% from 27.69% a year ago. Overall APE grew 17.83% YoY to ₹66,961 crore, supported by strong growth across both individual and group businesses.

R Doraiswamy, CEO and MD of LIC of India, said FY26 was a satisfying year with strong growth across business verticals and record operational metrics.

“Our strategy of channel diversification has been successful, with our banca and alternate channels (BAC) recording growth of more than 45%, with premium from BAC exceeding ₹5,000 crore in FY26,” he said.

He added that LIC is preparing for the implementation of Indian Accounting Standards (IndAS) within regulatory timelines and remains confident about sustaining long-term growth momentum.

Board announces dividend, bonus issue

The board recommended a final dividend of ₹10 per equity share for FY26. In addition, shareholders will receive a 1:1 bonus issue, meaning one bonus share for every existing share held.

The company has fixed May 29, 2026, as the record date for the bonus issue, while June 1, 2026, will be the deemed allotment date. June 25, 2026, has been fixed as the record date for the final dividend. The dividend proposal is subject to shareholder approval at LIC’s 5th AGM on July 27, 2026.

Despite retaining leadership in India’s life insurance market, LIC’s overall market share based on first-year premium income (FYPI) slipped marginally to 56.66% in FY26 from 57.05% a year earlier. However, the insurer maintained dominance in the group business segment with a market share of 70.11%.

Individual new business premium income rose 8.29% to ₹67,676 crore, while group business premium grew 16.26% to ₹1,96,609 crore during the year. LIC sold over 1.84 crore policies in FY26 compared with 1.77 crore policies a year ago.

The solvency ratio improved to 2.35 as of March 31, 2026, from 2.11 a year earlier, while the overall expense ratio declined by 51 basis points to 11.91%. Assets under management (AUM) rose 5.08% YoY to ₹57.29 lakh crore, reinforcing LIC’s position as India’s largest domestic institutional investor.

Ahead of the Q4 results, shares of LIC closed marginally lower by 0.03% at ₹800.70, with the insurer’s market capitalisation standing at ₹5.06 lakh crore.