Synopsis : Life Insurance Corporation of India reported a strong Q4 FY26 performance with net profit rising 23% year-on-year, supported by higher premium collections and stronger investment income. India’s largest insurer also posted record annual profit and improved profitability metrics during FY26.
Life Insurance Corporation of India (LIC) delivered a solid set of earnings for the March quarter of FY26 as growth in premium income and investment earnings boosted profitability.
The state-owned insurance giant reported a net profit of ₹23,420.43 crore during Q4 FY26, marking a 23.18% increase compared to the same quarter last year.
For the full financial year FY26, LIC posted its highest-ever annual profit at ₹57,419 crore, reflecting a 19.25% year-on-year rise from ₹48,151 crore reported during FY25.
The strong quarterly performance was largely driven by healthy growth in both premium collections and investment income.
Net premium income rose 12% year-on-year to ₹1.65 trillion during Q4 FY26, while net investment income increased 17% to ₹1.09 trillion.
For the full year, LIC’s investment income stood at ₹4.32 trillion, registering nearly 10% annual growth.
During FY26, LIC also implemented a revised accounting policy related to recognition of investment income in its standalone financial statements. The insurer stated that investment income will now be recognised by spreading premium or discount over the remaining holding period until maturity.
Operational metrics also showed strong improvement during the quarter.
Annualised Premium Equivalent (APE), a key indicator for life insurance sales, increased nearly 22% year-on-year to ₹22,954 crore during Q4 FY26.
Meanwhile, the Value of New Business (VNB) surged 66.7% year-on-year to ₹5,891 crore, reflecting stronger profitability from new policy sales.
LIC’s VNB margin also improved significantly to 25.66% during the quarter compared with 18.75% in the year-ago period.
For the full FY26, total APE rose 17.83% year-on-year to ₹66,961 crore, while Individual APE increased 13.39% to ₹43,325 crore.
Within the individual business segment, participating products contributed 64.89% of Individual APE, while non-participating products accounted for 35.11%.
Management stated that LIC will continue focusing on non-participating savings and term insurance products, though it expects the current product mix to remain broadly stable going forward.
The insurer’s financial position also remained strong during FY26.
Assets Under Management (AUM) increased to ₹57.29 trillion, compared with ₹54.52 trillion a year ago, reinforcing LIC’s position as India’s largest life insurer.
The yield on investments on policyholders’ funds improved sharply to 9.19% during Q4 FY26 from 7.72% in the corresponding quarter last year.
LIC’s solvency ratio strengthened to 235% compared with 211% a year earlier, indicating improved financial resilience and capital adequacy.
However, some operational metrics showed moderation during the quarter.
The 13th-month persistency ratio slipped slightly to 67.77% from 68.62% last year, while the 61st-month persistency ratio declined to 54.13% from 58.54%.
The expense of management ratio also increased to 12.51% during Q4 FY26 compared with 11.15% in the year-ago quarter.
Despite these pressures, LIC maintained its dominant leadership position in India’s life insurance sector.
Based on First Year Premium Income (FYPI), LIC retained an overall market share of 56.66% during FY26. The company held a 36.60% share in individual business and 70.11% share in group business.
LIC also sold 18.4 million individual policies during FY26, reflecting 3.7% year-on-year growth.
The board recommended a final dividend of ₹10 per share for FY26, subject to shareholder approval. The insurer also allocated ₹59,726 crore as bonus to policyholders during the year.
Management additionally indicated openness toward participating in the proposed NSE IPO if required.
Disclaimer : This article is for informational and educational purposes only and should not be considered investment advice. Investors should consult certified financial advisors before making investment decisions.
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