Life Insurance

LIC reported its highest ever PAT of ₹57,419 crores for FY26, marking a 19.25% YoY growth from ₹48,151 crores in FY25. Net VNB also reached a new high of ₹14,179 crores, growing by 41.63% YoY from ₹10,011 crores. The VNB margin significantly expanded by 360 basis points to 21.2%, reflecting improved business mix and operational efficiencies. The overall expense ratio decreased by 51 basis points to 11.91%, the lowest since the company's listing.

Total premium income for FY26 stood at ₹5,35,984 crores, a 9.8% increase from ₹4,88,148 crores in FY25. Individual new business premium income grew by 8.29% to ₹67,676 crores, while group business total premium income saw a robust 16.26% growth to ₹1,96,609 crores. Despite these gains, LIC's overall market share by first premium income slightly decreased to 56.6% from 57.05% in FY25, with individual business market share at 36.6% (down from 37.46%) and group business at 70.11% (down from 71.19%).

The Net VNB for FY26 reached ₹14,179 crores, a substantial 41.63% increase YoY. This growth was primarily driven by a favorable business mix, with the non-par segment contributing significantly. Non-par APE increased by 43.78% YoY to ₹15,214 crores, now accounting for 35.11% of individual APE. Management highlighted Jeevan Utsav as a key product contributing to the non-par savings growth, while Jeevan Labh performed well in the par segment.

Bancassurance and Alternate Channels demonstrated exceptional growth, with new business premium income soaring 45.19% YoY to ₹5,076 crores, marking the first time this channel crossed the ₹5,000 crore threshold. This channel's share of individual new business premium rose to 7.51% from 5.59% in FY25. In digital initiatives, the ANANDA app facilitated 23,00,983 policy sales, a 56.08% increase YoY, and saw a 29.56% growth in active agents. The agency workforce, however, saw a slight reduction to 14,57,045 agents.

Persistency metrics showed continued strength, with improvements on a premium basis for the 37th and 49th months, and on a policy basis for the 13th, 37th, and 49th months. Management noted that increased ticket sizes are expected to further aid persistency. Claims processing remained efficient, with 2,49,56,342 claims processed, including 2,41,25,943 maturity and survival benefit claims. Maturity claims increased by 17.97% to ₹2,79,951 crores, while death claims rose 1.91% to ₹24,885 crores.

The Indian Embedded Value (IEV) as of March 31, 2026, was ₹7,89,185 crores, representing a 1.58% YoY increase from ₹7,76,876 crores. The solvency ratio improved to 2.35 from 2.11 in the previous year, indicating a strong capital position. Assets Under Management (AUM) grew by 5.08% YoY to ₹57,29,396 crores. Management emphasized maintaining a comfortable solvency level, especially in light of anticipated regulatory changes regarding risk-based capital.

LIC's product suite includes 58 products, with a focus on diversifying the mix. The non-par share of individual APE has consistently settled around 35% over the last three quarters, a significant increase from 27.69% in FY25. Management reiterated its commitment to offering a variety of products to cater to diverse customer needs, including high-ticket non-par savings and protection, while also focusing on the 'Insurance for All' vision by 2047, which includes micro-insurance for the bottom of the pyramid.

Management expressed caution regarding future dividend payouts, stating that the payout ratio will depend on upcoming regulatory changes, particularly the introduction of a risk-based capital framework. They emphasized the need to build reserves to maintain a comfortable solvency level. The sensitivity to equity market volatility^🌐 was also highlighted as a significant factor impacting risk-based capital assessments. The company aims to balance growth aspirations with prudent capital management and regulatory compliance.