LIC profit rises 23% in March quarter on all-round show

Synopsis

Life Insurance Corp announced a strong March quarter profit, up 23% to ₹23,467 crore. This growth was fueled by increased premiums and investment income. For the full year, profit after tax rose 19%. The company anticipates geopolitical tensions may affect savings flows. LIC is focusing on protection products and expects continued double-digit growth in new business premiums.

Mumbai: Life Insurance Corp reported a 23% year-on-year rise in consolidated net profit for the March quarter at ₹23,467 crore, driven by strong premium growth, higher investment income and improved operating performance.

The insurer, also India's biggest institutional investor, cautioned that prolonged geopolitical tensions could weigh on savings flows and economic activity. LIC had reported a net profit of ₹19,039 crore in the year-ago period. The board also recommended a final dividend of ₹10 per share for FY26.

For the full year, FY26 LIC posted a profit after tax of ₹57,453 crore, up 19% from ₹48,320 crore in FY25, while net premium income rose 10% to ₹5.38 lakh crore from ₹4.90 lakh crore a year earlier.

LIC expects macroeconomic uncertainty arising from the ongoing West Asia conflict to have some impact across sectors, including life insurance savings, however, it will continue targeting double digit growth in new business premium income.

"It is expected that every sector of the country will be impacted by the ongoing crisis," said R Doraiswamy, MD and CEO, LIC. "Naturally, when people experience some difficulty, savings, and that too savings through life insurance, can certainly have an impact, but we will try our best to continue to move towards our targeted growth rate."

First-year premium income rose 17% year-on-year to ₹13,009 crore in the March quarter, while renewal premium income increased 14% to ₹82,233 crore. Single premium collections climbed 22% to ₹70,119 crore.

Investment income, a key earnings driver for LIC, rose around 17% to ₹1.09 lakh crore during the quarter from ₹93,443 crore a year ago. However, the gains were partly aided by a change in accounting policy implemented in the fourth quarter, which contributed around ₹11,000 crore to growth in investment income. The insurer's solvency ratio improved to 2.35 at the end of FY26 from 2.11 a year ago.

LIC also said it continues to focus on non-participating savings and protection products. Protection business registered a growth rate of nearly 29% during the year, helped partly by customers opting for higher sum assured products.

The share of foreign institutional investor ownership in LIC has risen recently to over 0.3% as of March 31, 2026, from 0.22% at the time of the IPO allotment. Shares of LIC closed flat ₹800.70 when BSE benchmark index fell 0.24%.

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