Life Insurance Corporation of India (LICI) Q4 25/26 earnings summary

Executive summary

• Maintained leadership in India's life insurance sector with a 56.66% market share by first year premium income and 36.6% in individual, 70.11% in group segments for FY26.

• Total premium income grew 9.8% year-over-year to ₹5,35,984 crore, with individual and group segments both showing strong growth.

• Profit after tax rose 19.25% to ₹57,419 crore, with a recommended final dividend of ₹10 per share (₹20 pre-bonus issue basis).

• Value of New Business (VNB) increased 41.63% to ₹14,179 crore, with VNB margin improving by 360 bps to 21.2%.

• Assets under management increased 5.08% to ₹57,29,396 crore.

Financial highlights

• Individual new business premium rose 8.29% to ₹67,676 crore; renewal premium up 5.91% to ₹2,71,699 crore.

• Group business premium increased 16.26% to ₹1,96,609 crore.

• Annualized premium equivalent (APE) totaled ₹66,961 crore, with non-par share of individual APE rising to 35.11% from 27.69% last year.

• Persistency on premium basis for 13th, 25th, 37th, 49th, and 61st month stood at 74.64%, 68.98%, 66.94%, 63.03%, and 59.31% respectively.

• Overall expense ratio improved by 51 bps to 11.91%.

Outlook and guidance

• Focus remains on consolidating non-par gains, increasing ticket size, and improving persistency, with digital transformation and channel diversification.

• Margin expansion expected to be driven by higher ticket size and persistency, with product mix stabilizing.

• Dividend policy will remain cautious pending clarity on risk-based capital regulations.

• Management expressed confidence in continued growth and readiness for IndAS implementation.