LIC Announces 1:1 Bonus Share Issue and Strong FY26 Financial Performance

The Life Insurance Corporation of India (LIC) has officially announced a 1:1 bonus share issue, a move that underscores the insurance giant’s robust financial health. Alongside this strategic capital allocation, the state-owned insurer reported impressive growth in its financial results for the fourth quarter and the full fiscal year 2026.

Bonus Share Issue Details

Following approval from its board, LIC will issue one fully paid-up equity share of Rs 10 for every existing fully paid-up equity share of Rs 10 held by eligible shareholders. The company has designated May 29, 2026, as the record date to determine shareholder eligibility for this bonus distribution.

This initiative is a significant indicator of the company’s capital management strategy, reflecting strong reserves and a commitment to delivering value to its investor base.

Q4 and FY26 Financial Highlights

LIC’s performance in the final quarter of the 2026 fiscal year demonstrated significant momentum across several key metrics:

• Consolidated Net Profit: Reported at Rs 23,467 crore for the fourth quarter, compared to Rs 19,039 crore in the same period last year.
• Full-Year Profit: The company achieved a full-year profit after tax (PAT) of Rs 57,419 crore, marking a 19% year-on-year increase.
• Premium Income: Net premium income for the quarter reached Rs 1.64 lakh crore, an 11% increase compared to the previous year.
• Value of New Business (VNB): VNB saw a substantial increase of 41.63%, reaching Rs 14,179 crore, with the VNB margin improving to 21.2%.
• Solvency Ratio: The company’s solvency ratio strengthened to 2.35, up from 2.11, indicating a solid capital buffer.

In addition to the bonus issue, the board has recommended a final dividend of Rs 10 per share for the financial year 2025-26. June 25, 2026, has been set as the record date to identify shareholders eligible for this dividend payout.

Operational Efficiency and Growth

LIC’s strategy to focus on individual business segments has yielded tangible results. The Individual Business Non-Par Annualized Premium Equivalent (APE) grew by 43.78% to Rs 15,214 crore. The company successfully optimized its operational costs, with the expense ratio declining to 11.91% for FY26 from 12.42% in the prior year.

With assets under management (AUM) rising to Rs 57,29,396 crore and a notable increase in policyholder bonuses, which stood at Rs 59,726 crore, LIC continues to solidify its position as a cornerstone of the Indian financial sector. As the company moves into the new fiscal year, these indicators suggest a sustained focus on profitability and shareholder returns.

Key Takeaways for Investors

• Bonus Eligibility: Ensure your shares are held by the record date of May 29, 2026, to qualify for the 1:1 bonus issue.
• Dividend Record Date: Mark your calendars for June 25, 2026, regarding the final dividend eligibility.
• Financial Strength: The 19% YoY growth in full-year profit and improved solvency ratios reflect a stable and growing enterprise.

Disclaimer: This article is for informational purposes and does not constitute financial advice. Investors should consult with a professional advisor before making investment decisions.