Business

IIE DIGITAL DESK : Shares of Life Insurance Corporation of India rallied sharply on Friday, May 22, after the insurer reported a stronger-than-expected set of fourth-quarter earnings, leading to renewed investor interest in the stock. The positive results pushed the share price up by over 4%, reflecting upbeat market sentiment following the announcement.

At 9:21 am, LIC shares were trading 4.35% higher at ₹835 on the National Stock Exchange, with the company’s market capitalisation standing at ₹5,26,239.81 crore. The surge came after the insurer’s March quarter results for FY2025-26 exceeded street expectations, driven by robust performance across its core insurance business and investment income.

The fourth quarter, LIC reported a 23.18% year-on-year rise in standalone net profit, which climbed to ₹23,420.43 crore compared to ₹19,012.79 crore in the same period last year. The company attributed the growth to steady business expansion and strong returns from its investment portfolio, reinforcing its position as India’s largest life insurer.

Total income during the quarter also registered a healthy increase of 13.81%, rising to ₹2,53,591.83 crore from ₹2,22,805.49 crore a year earlier. The insurer saw growth across multiple segments, including first-year premium income, which increased to ₹12,970 crore, and renewal premiums, which rose to ₹81,933 crore, indicating sustained customer retention and business inflows.

Net premium income for the quarter stood at ₹1,64,691.21 crore, compared to ₹1,47,585.56 crore in the corresponding period of the previous fiscal year, further highlighting consistent operational strength.

LIC CEO and MD R. Doraiswamy said FY26 has been a “satisfying year” for the company, noting strong growth across business verticals and significant improvements in value metrics. He highlighted that non-participating share on an APE basis in individual business exceeded 35%, while the value of new business (VNB) margin remained above 21%. He also pointed to strong channel diversification, with banca and alternate channels growing more than 45% and contributing over ₹5,000 crore in premiums, along with VNB growth exceeding 41%.

The board recommended a final dividend of ₹10 per equity share, subject to approval at the upcoming Annual General Meeting. In addition, LIC announced a 1:1 bonus issue, offering one fully paid-up share for every existing share held.

The record date for the bonus issue has been set as May 29, while the dividend record date has been fixed for June 25, making the stock particularly important for investors tracking corporate action benefits.

The combination of strong earnings performance, improved business metrics, and shareholder-friendly announcements has placed LIC firmly in focus in the equity markets, reinforcing confidence in its near-term outlook.