LIC Q4 net profit jumps 23% to ₹23,467 crore; ₹10 dividend declared
Synopsis
LIC's Q4 FY26 numbers tell a broadly positive story — profit up 23%, investment income up 17%, solvency strengthened. But the fine print flags rising employee costs and a slide in long-term persistency ratios, two metrics that will define whether this earnings momentum holds into FY27.
Key Takeaways
LIC posted Q4 FY26 consolidated net profit of ₹23,467 crore , up 23 per cent year-on-year.
Final dividend of ₹10 per share declared; record date for dividend payout is 25 June 2026 .
1:1 bonus issue record date set for 29 May 2026 ; allotment on 1 June 2026 .
Full-year FY26 profit after tax rose 19 per cent to ₹57,453 crore .
Solvency ratio improved to 2.35 from 2.11 a year ago, above the regulatory floor.
61st month persistency ratio fell to 54.13 per cent from 58.54 per cent , flagging long-term retention pressure.
Life Insurance Corporation of India (LIC) on Thursday, 21 May 2026, reported a 23 per cent year-on-year surge in consolidated net profit to ₹23,467 crore for the fourth quarter of FY2025-26, up from ₹19,039 crore in the same quarter a year earlier. The state-owned insurer also declared a final dividend of ₹10 per equity share, capping a strong full-year performance.
Dividend and Bonus Issue Details
The LIC board approved a final dividend of ₹10 per share of face value ₹10 each — equivalent to ₹20 per share on a pre-bonus issue basis. The record date for dividend eligibility has been fixed at 25 June 2026. Separately, the corporation has set 29 May 2026 as the record date for its 1:1 bonus issue, with the deemed date of allotment of bonus equity shares on 1 June 2026.
Premium Income and Investment Earnings
Net premium income rose 12 per cent to ₹1.65 lakh crore in Q4 FY26, compared with ₹1.48 lakh crore in the year-ago quarter, driven by growth across renewal and single premium segments. First-year premium income climbed 17 per cent to ₹13,009 crore from ₹11,103 crore, while renewal premium income grew 14 per cent to ₹82,233 crore.
Investment income — a critical earnings engine for the insurer — jumped approximately 17 per cent to ₹1.09 lakh crore in Q4, up from ₹93,443 crore in the corresponding quarter of the previous year. Total surplus for the quarter stood at ₹89,058 crore, against ₹77,053 crore a year earlier.
Rising Costs and Persistency Pressure
Management expenses increased to ₹20,699 crore in Q4 from ₹16,526 crore a year ago. Employee remuneration and welfare expenses rose sharply to ₹8,891 crore from ₹5,943 crore, and other operating expenses climbed to ₹4,074 crore from ₹2,848 crore in the year-ago period — signalling cost pressures that could weigh on margins going forward.
On policy retention, the 13th month persistency ratio dipped to 67.77 per cent from 68.62 per cent a year earlier, while the 61st month persistency ratio fell more sharply to 54.13 per cent from 58.54 per cent — a metric analysts watch closely as an indicator of long-term policyholder engagement.
Full-Year FY26 Scorecard
For the full financial year FY2025-26, LIC posted a profit after tax of ₹57,453 crore, up 19 per cent from ₹48,320 crore in FY25. Full-year net premium income rose 10 per cent to ₹5.38 lakh crore from ₹4.90 lakh crore. Policyholders' funds excluding linked assets stood at ₹53.68 lakh crore as of 31 March 2026, while shareholders' investments surged to ₹1.5 lakh crore from ₹1.03 lakh crore in FY25.
Solvency Position
LIC's solvency ratio improved to 2.35 as of 31 March 2026, up from 2.11 a year ago, remaining comfortably above the regulatory minimum — a reassuring signal for policyholders and regulators alike. The improvement reflects both stronger earnings and a healthier capital base. With a bonus issue and dividend payout on the horizon, investor attention will now turn to how LIC manages cost inflation while sustaining premium growth into FY27.
Point of View
Not accounting jugglery. But the sharp rise in employee costs and the deteriorating 61st month persistency ratio deserve more scrutiny than the results presentation invites. A persistency slide means policyholders are lapsing before policies mature — which compresses long-term value creation even as short-term investment income flatters the P&L. With a 1:1 bonus issue sweetening the optics for retail investors, the market will cheer; the harder question is whether LIC can arrest the retention slide before it becomes a structural drag.
NationPress
4 Aug 2026
Frequently Asked Questions
What is LIC's net profit for Q4 FY26?
LIC reported a consolidated net profit of ₹23,467 crore in Q4 FY2025-26, a 23 per cent increase from ₹19,039 crore in the same quarter of the previous year. The result was driven by strong investment income and premium growth.
What dividend has LIC declared for FY26?
LIC's board has recommended a final dividend of ₹10 per equity share of face value ₹10, equivalent to ₹20 per share on a pre-bonus issue basis. The record date for determining dividend eligibility is 25 June 2026.
What is LIC's 1:1 bonus issue and when will it take effect?
LIC has announced a 1:1 bonus issue, meaning shareholders will receive one additional share for every share held. The record date is 29 May 2026, with the deemed date of allotment of bonus shares set for 1 June 2026.
How did LIC perform for the full financial year FY26?
For FY2025-26, LIC reported a profit after tax of ₹57,453 crore, up 19 per cent from ₹48,320 crore in FY25. Full-year net premium income rose 10 per cent to ₹5.38 lakh crore.
What is LIC's solvency ratio and why does it matter?
LIC's solvency ratio stood at 2.35 as of 31 March 2026, up from 2.11 a year earlier, comfortably above the regulatory minimum. The solvency ratio measures an insurer's ability to meet policyholder claims — a higher ratio signals greater financial stability.
