LIC hits record profit on the back of rising non-par margins

Life Insurance Corporation of India is moving the needle on its product mix. For the fiscal year ending March 2026, the company posted a record net profit of ₹57,419 crore, representing a 19.3% year-on-year increase. The more significant shift is in the value of new business, which surged 41.6% to ₹14,179 crore, pushing margins up 360 bps to 21.2%. This growth is driven by a deliberate pivot toward non-participating segments, which now account for 35.1% of individual annual premium equivalent, up from 27.7% a year ago. Bancassurance and alternate channels also crossed a milestone by generating over ₹5,000 crore in new premiums. Despite these metrics, management remains cautious. The CEO refused to guide on FY27 margins, pointing to limited visibility, while legacy headwinds from a 25-year-old product cohort are expected to continue through January 2027. The board has recommended a final dividend of ₹10 per share, though the insurer remains wary of its capital position ahead of the new RBC framework.