Life Insurance Corporation of India — Q4 FY26 earnings call
Summary generated by AI from the official transcript Life Insurance Corporation of India filed with BSE on 28 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
LIC reported FY26 profit after tax of Rs 57,419 crore, up 19.25% year-on-year, and net VNB growth of 41.63% to Rs 14,179 crore with margin expanding 360 basis points to 21.2%. Total premium income rose 9.8% to Rs 5,35,984 crore, non-par share of individual APE rose to 35.11%, and the Board recommended a final dividend of Rs 10 per share (equivalent to Rs 20 per share pre-bonus). Management also discussed operating and economic assumption changes in the VNB and embedded value walk, persistency trends, agency count, and the transition toward risk-based capital and Ind AS.
Numbers mentioned
Profit after tax: 57,419 crore rupees (FY26)
p. 5
“The PAT for the year ended 31st March 2026 was 57,419 crore rupees as compared to 48,151 crore rupees for the last year, registering a growth of 19.25% on a year-on-year basis.”
R Doraiswamy, page 5 of the filed PDF · View the filing
Net VNB: 14,179 crore rupees (FY26)
p. 5
“That net VNB has registered a growth of 41.63% on a year-on-year basis to 14,179 crore rupees for the year ended 31st March, 2026, from 10,011 crore rupees for the previous year.”
R Doraiswamy, page 5 of the filed PDF · View the filing
Net VNB margin: 21.2% (FY26)
p. 6
“Further, net VNB margin has improved by 360 basis points on a year-on-year basis to 21.2% for the year ended 31 March, 2026 from 17.6% for the previous year.”
R Doraiswamy, page 6 of the filed PDF · View the filing
Total premium income: 5,35,984 crore rupees (FY26)
p. 4
“For the year ended 31st March 2026, we have reported a total premium income of 5,35,984 crore rupees as compared to total premium income of 4,88,148 crore rupees, for year ending 31 March, 2025, registering a growth of 9.8% on a year-on-year basis.”
R Doraiswamy, page 4 of the filed PDF · View the filing
Solvency ratio: 2.35 (As on 31st March 2026)
p. 6
“The solvency ratio as on 31st March 2026 improved to 2.35 as against 2.11 on March 31st 2025.”
R Doraiswamy, page 6 of the filed PDF · View the filing
Indian embedded value: 7,89,185 crore rupees (As on 31st March 2026)
p. 6
“The Indian embedded value as on 31st March 2026 has been determined as 7,89,185 crore rupees as compared to 7,76,876 crore rupees as on 31st March 2025.”
R Doraiswamy, page 6 of the filed PDF · View the filing
Assets under management: 57,29,396 crore rupees (As on 31st March 2026)
p. 6
“The assets under management as on 31st March 2026 was 57,29,396 crore rupees as compared to 54,52,297 crore rupees as on 31st March 2025.”
R Doraiswamy, page 6 of the filed PDF · View the filing
Overall expense ratio: 11.91% (FY26)
p. 7
“For the year ended 31st March 2026, the overall expense ratio was 11.91%, as compared to 12.42% for the last year.”
R Doraiswamy, page 7 of the filed PDF · View the filing
Bancassurance and Alternate Channels new business premium: 5,076 crore rupees (FY26)
p. 6
“Bancassurance and Alternate Channels collected a new business premium income of 5,076 crore rupees for the year ended 31st March 2026 as compared to 3,496.10 crore rupees for the previous year, registering a growth of 45.19% on a year-on-year basis.”
R Doraiswamy, page 6 of the filed PDF · View the filing
Market share by first year premium income: 56.6% (Year ending 31st March 2026)
p. 4
“Our market share by first premium income by first year premium income for the year ending 31st March 2026, is 56.6% as per IRDAI as compared to 57.05% for a similar period ended 31st March 2025.”
R Doraiswamy, page 4 of the filed PDF · View the filing
Final dividend: INR10 per equity share of INR10 each equivalent to INR20 per equity share pre-bonus (FY26)
p. 9
“I would like to share that the Board of Directors has recommended a final dividend of INR10 per equity share of INR10 each equivalent to INR20 per equity share, pre-bonus issue basis, for the financial year 2025-26 subject to approval of shareholders in the 5th Annual General Meeting of the Corporation.”
R Doraiswamy, page 9 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
VNB margin
stated as an aspiration by Dinesh Pant
p. 17
“So our ultimate strategy, as you mentioned rightly, yes, we expect margins to further improve, but that all depends upon various factors, and that will have to be seen over a period of time.”
Dinesh Pant, page 17 of the filed PDF · View the filing
Dividend payout ratio — future
stated as an aspiration by R Doraiswamy
p. 14
“We expect it to be sustained in the future also, that also has been kept in mind before the board decided the amount of dividend to be declared.”
R Doraiswamy, page 14 of the filed PDF · View the filing
Product mix / non-par share
stated as an aspiration by Dinesh Pant
p. 23
“Now here onwards, the changes will be dynamic, depending on the market situation, but almost -- we are not looking for any major significant changes from here, but largely looking to consolidate from this position, so that the VNB growth should happen”
Dinesh Pant, page 23 of the filed PDF · View the filing
Dividend policy finalization
stated conditionally by Dinesh Pant
p. 16
“we want to be very sure about how the riskbased capital scenario comes out and then take a sort of finality to the dividend policy will emerge only after that.”
Dinesh Pant, page 16 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said Jeevan Utsav and Jeevan Labh contributed the most to the savings bucket growth.
Answered by Uthup Joseph
Asked by Swarnab Mukherjee: Which products drove the strong non-par savings growth and can it continue into FY27?
p. 10
“The product which has contributed best is Jeevan Utsav, which has given us a very good percentage as far as the savings bucket is concerned.”
Uthup Joseph, page 10 of the filed PDF · View the filing
Business mix contributed 3%, RFR contributed 3.4%, and operating assumption changes including GST were negative 2.8%.
Answered by A.K. Srivastava
Asked by Swarnab Mukherjee: What drove the VNB margin change from 17.6% to 21.2%?
p. 10
“So this business mix which has gone up has contributed to 3% to the VNB margin. Then the RFR throughout the year if you see, it is ranging, it's range-bound and then in some months it has gone up to 0.84 – 84 basis points or so. So this RFR has contributed to 3.4%.”
A.K. Srivastava, page 10 of the filed PDF · View the filing
Management attributed it to volatility at year-end, particularly in March, though values partly recovered in April.
Answered by Arindam Dasgupta
Asked by Nishchint Chawathe: Why was the credit/debit fair value change decline so large versus flat equity indices?
p. 13
“Just to add here, there was a lot of volatility at the end of the financial year. Especially, in the past month, that is, the month of March. In March, there was -- value went down. But again in the month of April, we have recouped almost 80% of these values.”
Arindam Dasgupta, page 13 of the filed PDF · View the filing
Management said LIC's large equity exposure creates sensitivity under risk-based capital and they want clarity before committing to a dividend policy shift.
Answered by Dinesh Pant
Asked by Avinash Singh: Why is LIC cautious on dividend payout given high solvency versus peers hoping for capital release under risk-based solvency?
p. 15
“the point here is sensitivity to the volatility in equities is a significant factor for -- which will impact the risk-based capital.”
Dinesh Pant, page 15 of the filed PDF · View the filing
Management attributed the decline mainly to a geographical issue with one microfinance corporate agency and a conscious move away from low-ticket policies to protect persistency.
Answered by Hemant Buch
Asked by Mohit Mangal: Why did bancassurance and alternate channel policy sales decline 36% even as individual policies grew 4%?
p. 21
“it is mainly attributed to one geographical issue where one of our corporate agency, and particularly a microfinance institution was not able to concentrate that heavily and that has impacted.”
Hemant Buch, page 21 of the filed PDF · View the filing
Management said it is too early to see any effect and that April performance has been good and better than the prior year.
Answered by R.Doraiswamy
Asked by Shobhit Sharma: Has recent market volatility affected ULIP or non-par guaranteed product demand?
p. 23
“It is too early to comment. Perhaps the effect of the crisis has not completely been, has percolated. But as of now, what we are seeing in the month of April, our performance has been good.”
R.Doraiswamy, page 23 of the filed PDF · View the filing
Risks flagged
Uncertainty and potential capital strain from the upcoming risk-based capital regime given LIC's large equity exposure
p. 15
“Now, you would appreciate that when we go for the risk-based capital, LIC because of large book size of it with participating policies and our exposure to equity is significantly higher as compared to the competing company.”
Dinesh Pant, page 15 of the filed PDF · View the filing
GST impact negatively affecting operating assumption changes and margin
p. 10
“So the combined effect of the persistency and expense in some line of business adjustments based on the experience along with the GST impact, which has been taken as part of the policy expenses, the contribution is negative 2.8%.”
A.K. Srivastava, page 10 of the filed PDF · View the filing
Lower persistency in certain cohorts and lines of business
p. 7
“We are also focusing our energies on improvement across certain cohorts where we have seen a drop.”
R Doraiswamy, page 7 of the filed PDF · View the filing
Decline in agency count and market share by number of agents
p. 6
“The market share by number of agents as on 31st March 2026 stands at 44.25% as against 47.61% for March 31st 2025.”
R Doraiswamy, page 6 of the filed PDF · View the filing
High maturity claim outgo expected to continue through early 2027 due to policies sold 25 years ago maturing
p. 18
“In 2025, 2026 and 2027 are expected to be significantly high. All those are with a high sum assured also.”
R. Doraiswamy, page 18 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.