LIC hits record profit on the back of rising non-par margins
Net profit jumps 19% to ₹57,419 crore as the insurer tilts toward non-participating policies and new sales channels.
— 2 earlier stories on Life Insurance Corporation of India →What's new with Life Insurance Corporation of India
- Net profit rose 19.3% to a record ₹57,419 crore.
- VNB margins expanded by 360 bps to 21.2%.
- Non-participating segment share climbed to 35.1% of individual APE.
Why this matters for Life Insurance Corporation of India
The shift toward non-participating business is finally showing up in the margins, hitting a post-listing high of 21.2%. Management’s refusal to provide FY27 guidance, however, keeps the focus firmly on the persistent drag from legacy maturity claims.
What we're watching
- Resolution of elevated maturity claims lingering until January 2027.
- The eventual impact of the upcoming RBC framework on dividend policy.
- Whether bancassurance growth can sustain its new ₹5,000 cr pace.
The full read
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.
Questions answered
- What is the status of the legacy product claims?
- Management expects elevated maturity claims from a 25-year-old product cohort to persist until January 2027.
- Did the company issue guidance for VNB margins in FY27?
- No. The CEO declined to set a target, citing concerns over near-term visibility.