Mumbai, May 21 (IANS). Government insurance company Life Insurance Corporation of India (LIC) on Thursday reported a 23 percent increase in its consolidated net profit in the fourth quarter of the financial year 2025-26 and the company’s profit increased to Rs 23,467 crore, compared to Rs 19,039 crore in the same period of the last financial year.
Additionally, the Board of LIC has recommended an interim dividend of Rs 10 on each equity share of face value Rs 10, which is equivalent to Rs 20 per equity share before the issue of bonus shares.
The record date for determining the eligibility of investors to receive dividend has been kept as June 25. At the same time, the company has fixed May 29 as the record date for its 1:1 bonus issue. The estimated date of allotment of bonus equity shares will be June 1, 2026.
LIC said in an exchange filing that its net premium income rose 12 percent to Rs 1.65 lakh crore in the fourth quarter, from Rs 1.48 lakh crore in the same period last year. This increase was due to growth in both renewal and single premium segments.
Premium income for the first year stood at Rs 13,009 crore during the January-March quarter, compared to Rs 11,103 crore in the same period last year. That means it increased by 17 percent.
Renewal premium income also increased by 14 percent to Rs 82,233 crore from Rs 79,425 crore in the same quarter last year.
Investment income, the main source of LIC’s earnings, increased to Rs 1.09 lakh crore in the fourth quarter, compared to Rs 93,443 crore in the same period last year. That means there was a strong increase of about 17 percent.
The company recorded a net surplus of Rs 89,058 crore in the quarter, compared to Rs 77,053 crore a year ago. Surplus after share of profit of associates and minority stake stood at Rs 24,964 crore, compared to Rs 20,271 crore last year.
However, management expenses increased to Rs 20,699 crore during the quarter, from Rs 16,526 crore a year ago.
Expenditure on salaries and welfare of employees also increased to Rs 8,891 crore, compared to Rs 5,943 crore in the same quarter last year. Other operating expenses also increased to Rs 4,074 crore, from Rs 2,848 crore a year ago.
The solvency ratio of LIC increased to 2.35 by March 31, 2026, whereas it was 2.11 a year ago. This ratio remains well above the regulatory requirement.
The company’s persistence ratio for the 13th month was 67.77 percent, whereas a year ago it was 68.62 percent. At the same time, the persistence ratio of the 61st month was 54.13 percent, which was 58.54 percent last year.
LIC’s profit after tax for the full financial year 2025-26 increased by 19 percent to Rs 57,453 crore, compared to Rs 48,320 crore in the financial year 2024-25.
Full-year net premium income rose 10 percent to Rs 5.38 lakh crore, from Rs 4.90 lakh crore a year ago.
Policyholders’ funds, excluding linked assets, stood at Rs 53.68 lakh crore as of March 31, 2026, compared to Rs 51.64 lakh crore a year ago.
At the same time, shareholders’ investment increased to Rs 1.5 lakh crore, which was Rs 1.03 lakh crore in the financial year 2024-25.
–IANS
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