The country’s government insurance company Life Insurance Corp i.e. LIC has registered an annual growth of 23% in its consolidated net profit in the fourth quarter of the financial year 2026. Which increased to Rs 23,467 crore as compared to Rs 19,039 crore in the same period last year. The company’s board has also recommended a final dividend of Rs 10 per share for the financial year 2025-26.
The company’s net premium income increased by 12% to Rs 1.65 lakh crore, whereas it was Rs 1.48 lakh crore a year ago. This increase was due to growth in renewal and single premium segments. The first year premium income in this quarter was Rs 13,009 crore, whereas in the same quarter last year it was Rs 11,103 crore, which shows a growth of 17%. Renewal premium income increased by 14% year-on-year from Rs 79,425 crore to Rs 82,233 crore.
Increase in premium collection
Single premium collections increased by 22% from Rs 57,694 crore to Rs 70,119 crore in Q4FY25. Investment income, which is a major source of income for LIC, increased sharply to Rs 1.09 lakh crore in the quarter, compared to Rs 93,443 crore in the same quarter last year, showing a growth of about 17%. LIC recorded a total surplus of Rs 89,058 crore in this quarter, compared to Rs 77,053 crore a year ago. Surplus after deducting the share of profit from associates and minority interest was Rs 24,964 crore, compared to Rs 20,271 crore a year ago.
Management expenses increased to Rs 20,699 crore in this quarter, whereas it was Rs 16,526 crore a year ago. Expenditure on employee salaries and welfare increased sharply from Rs 5,943 crore to Rs 8,891 crore in Q4FY25. Other operating expenses also increased from Rs 2,848 crore to Rs 4,074 crore. The solvency ratio of LIC improved to 2.35 by March 31, 2026, whereas it was 2.11 a year ago. This ratio remained well above the regulatory requirements.
This much was the persistence ratio
The expense management ratio of the company increased to 12.52% from 11.15% in the same quarter last year. The insurance company reported the persistence ratio for the 13th month as 67.77%, whereas a year ago it was 68.62%. The persistence ratio for the 61st month was 54.13%, whereas in the same period last year it was 58.54%.
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