Shares of insurance behemoth Life Insurance Corporation of India (LIC) gained more than 4% today, extending post-earnings momentum as investors cheered a stellar set of fourth-quarter results for the financial year ended March 31, 2026. 

Along with a strong financial performance, the state-run insurer delighted shareholders by declaring a final dividend and its first-ever 1:1 bonus share issue.

Life Insurance Corporation of IndiaLICI₹835.55 +2.78%

Dividend & Bonus Allotment

  1. First-Ever 1:1 Bonus Issue: LIC’s board approved the issuance of one new fully paid-up equity share of ₹10 for every one existing share held. The record date for the bonus issue has been fixed for Friday, May 29, 2026, with the deemed allotment date set for June 1, 2026. 
  2. Final Dividend: The board recommended a final dividend of ₹10 per share for FY26, subject to approval at the upcoming Annual General Meeting. The record date for the dividend distribution is June 25, 2026.

Earnings

LIC reported a substantial 23.26% year-on-year (YoY) increase in consolidated net profit for the fourth quarter, driven by healthy premium income and robust investment earnings.

  • Q4 FY26 Net Profit: ₹23,467.18 crore, up from ₹19,038.67 crore in Q4 FY25.
  • Full-Year FY26 Net Profit: ₹57,453.15 crore, marking an 18.90% growth over ₹48,320.33 crore in FY25.
  • Net Premium Income (Q4): Rose 11.59% YoY to ₹1,65,067.19 crore compared to ₹1,47,917.19 crore in the year-ago period. For the full year, net premium income grew 9.77% to ₹5,37,603.79 crore.
  • Income from Investments (Net): Emerged as a major earnings driver, standing at ₹1,09,210.70 crore for the quarter (up from ₹93,442.76 crore in Q4 FY25). Full-year investment income grew to ₹4,31,573.57 crore.

Premium Income Breakdown (Q4 FY26)

The expansion in premium income was well-distributed across retail and corporate segments, largely assisted by single premium traction and a deliberate strategic pivot toward high-margin non-participating products:

  • First-Year Premium: ₹13,009.00 crore (vs. ₹11,102.97 crore in Q4 FY25) — Up 17.16%
  • Renewal Premium: ₹82,233.16 crore (vs. ₹79,424.96 crore in Q4 FY25) — Up 3.53%
  • Single Premium: ₹70,118.62 crore (vs. ₹57,694.11 crore in Q4 FY25) — Up 21.53%

Core Insurance Metrics & Analytical Ratios

For an insurer, health is evaluated beyond the bottom line. LIC showed improvements across safety margins and profitability metrics:

  • Solvency Ratio: Improved to 2.35 as of March 31, 2026, up from 2.11 a year ago. This sits comfortably above the regulatory mandate of 1.50, demonstrating solid capital adequacy.
  • Value of New Business (VNB) Margin: Expanded significantly to 21.2% from 17.6% a year earlier. This reflects an improving product mix leaning toward non-participating savings and protection plans.
  • Expenses of Management Ratio: Stood at 12.52% for the quarter. However, on a full-year basis, the ratio improved to 11.93% compared to 12.44% in FY25.

Persistency Ratios (Full-Year Performance)

The persistency ratio evaluates customer retention over time. LIC’s full-year trends showed steady metrics:

  • 13th Month: 74.64% (vs. 74.84% in FY25)
  • 25th Month: 68.98% (vs. 70.99% in FY25)
  • 61st Month: 59.31% (vs. 63.12% in FY25)

Asset Quality (NPA Ratios for Policyholders’ Fund)

LIC recorded a noticeable contraction in bad loans, reinforcing balance sheet strength:

  • Gross NPAs: Dropped to ₹7,205.20 crore (1.21%) as of March 31, 2026, compared to ₹8,442.89 crore (1.46%) as of March 31, 2025.
  • Net NPAs: Remained exceptionally well-controlled at ₹4.34 crore, down from ₹5.47 crore in the previous financial year.