Life Insurance Corporation of India (LIC) reported a 23% YoY profit growth in the March quarter, helped by strong group business growth and continued momentum from last year’s tax cuts.
The state-owned company posted a net profit of Rs 23,467 crore for the three months ended March 31, up from Rs 19,038 crore in Q4 FY25.
Analysts had expected a strong quarter for India’s largest insurer, as tax changes continued to support demand for insurance in the world’s most populous country, even as the Middle East conflict dented customer sentiment, hurting sales of market-linked policies.
LIC Q4 premium income
LIC’s net premium income grew 11.5% YoY to Rs 1,65,067 crore. Its one-time premiums rose 21.5% YoY while first year premiums from new policies rose around 17%. LiIC’s annualized premium equivalent sales — a key measure of new business — rose nearly 22% YoY.
LIC’s group business annualized premium equivalent sales rose 37%. Analysts at Emkay Global had expected the group’s business to see strong momentum this quarter. LIC’s value of new business, which reflects expected profit from new policies, rose 67% YoY.
“Going forward, there is good potential for growth in group business and the growth is sustainable, but ongoing market volatility may affect growth if commercial organisations face financial impact”, CEO and MD R Doraiswamy said in a post-earnings call.
He added the company continued to increase its focus on non-participating products, where policyholders don’t receive profit-linked bonuses, which helped improve profitability.
LIC’s margins on new business stood at 21.2% as of March-end compared with 17.6% a year earlier, supported by a higher contribution from non-participating products. The firm’s solvency ratio rose to 2.35 during the quarter from 2.11 a year earlier.
LIC dividend declared
Life Insurance Corporation’s board of directors has recommended a final dividend of Rs 10 per equity share for the fiscal year 2025-26.
“Board has fixed Thursday, June 25, 2026 as the Record Date for the purpose of ascertaining the eligibility of Members of the Corporation for the proposed final dividend,” LIC said in an exchange disclosure.