LICI
Large CapLife Insurance Corporation Of India
Financial Services
Life Insurance Corporation of India (LICI) is a leading Indian life insurer, maintaining market leadership in both individual and group business segments. The company reported its highest ever PAT and VNB for FY26, driven by strong growth in non-participating products and digital channel expansion, while also improving its solvency ratio.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is acceptable, price trend argues for patience, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 1/4 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Good · 57/100Rev +14% YoY · PAT +23% YoY · +17% QoQ · operating leverage · margin compression
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,76,744 Cr | +13.8% | +17.3% |
| EBITDA | ₹11,222 Cr | -47.8% | -9.3% |
| Operating margin | 4.0% | -500 bps | -100 bps |
| PAT | ₹23,467 Cr | +23.3% | +81.8% |
| PAT margin | 8.5% | +65 bps | +301 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
LICI reports record PAT and VNB for FY26, with VNB margin expanding by 360 bps to 21.2%. Non-par APE share rose to 35.11%, and Bancassurance & Alternate Channels NBP grew 45.19% YoY, crossing INR 5,000 crore for the first time. Overall expense ratio decreased by 51 bps.
LICI's thesis appears intact, supported by strong financial performance including record PAT and VNB, significant VNB margin expansion, and robust growth in high-margin non-par business. Management's focus on digital transformation and channel diversification, particularly Bancassurance, is yielding results. However, a slight dip in market share and agency count, alongside caution regarding future risk-based capital requirements, warrant monitoring.
Non-Par Business Growth
Non-par APE increased from INR 10,581 crore to INR 15,214 crore, reflecting a 43.78% YoY increase, with its share of individual APE rising to 35.11%.
Bancassurance & Alternate Channels
This channel registered 45.19% YoY growth in new business premium, crossing INR 5,000 crore for the first time, and its share of individual NBP rose to 7.51%.
Digital Transformation
ANANDA app processed 23,00,983 policies (+56.08% YoY), with active agents growing 29.56%. New MyLIC customer app and LIC Super Sales Saathi app launched.
Bima Sakhi Yojana
3,45,000 women designated as Bima Sakhis, selling 21.94 lakh policies and generating INR 2,848 crore NBP in FY26, covering 59% of Gram Panchayats.
Digital Policy Processing
ANANDA app completed 23,00,983 policies in FY26, a 56.08% YoY growth from 14,74,208 policies in FY25.
Digital Agent Adoption
Number of active agents in ANANDA app grew by 29.56% in FY26.
Bima Sakhi Network Expansion
3,45,000 Bima Sakhis appointed, covering 1,43,924 Gram Panchayats (59% of total) by March 31, 2026, towards the objective of one Bima Sakhi per Gram Panchayat.
Strong Non-Par Business Momentum
Non-par share of individual APE has consistently settled at about 35% sequentially, contributing significantly to VNB growth and margin expansion.
Increased Ticket Size Focus
Management's strategy to increase average ticket size, particularly in non-par products, is expected to improve persistency and margins in the coming years.
Operational Efficiency
Overall expense ratio decreased by 51 basis points to 11.91% in FY26, the lowest since listing, indicating cost management focus.
Market Share Erosion
Overall market share by first premium income, individual, and group business segments saw slight declines YoY in FY26.
Agency Workforce Decline
Total individual agents decreased to 14,57,045 in FY26 from 14,86,851 in FY25, a 2% reduction, impacting market share by agents.
Persistency Challenges in Certain Cohorts
Persistency on a premium basis for 13th and 25th months saw minor drops, and 61st month persistency on policies basis also declined.
Risk-Based Capital (RBC) Transition
Management is cautious about the potential impact of the upcoming risk-based capital regime on capital requirements, especially due to LIC's large equity exposure.
Equity Market Volatility
Economic assumption changes in EV walk showed a fall in MTM in equity of INR 53,698 crore, highlighting sensitivity to market fluctuations.
Sustaining Persistency Improvements
While some persistency metrics improved, management acknowledges drops in certain cohorts and the need for continued focus to improve across all segments.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The earnings call primarily presents annual results for FY26 compared to FY25, with all key financial and operational metrics explicitly stated on a year-on-year basis. This reflects the long-term nature of insurance contracts and business cycles.
Market Share (First Premium Income)
Market share by first premium income for FY26 is 56.6%, down from 57.05% in FY25.
Individual Business Market Share
Individual business market share for FY26 is 36.6%, compared to 37.46% in FY25.
Group Business Market Share
Group business market share for FY26 is 70.11%, compared to 71.19% in FY25.
Total Premium Income
Total premium income for FY26 was INR 5,35,984 crore, up 9.8% YoY from INR 4,88,148 crore in FY25.
Confidence in Growth Trajectory
Management is confident that having achieved significant directional changes, the company is now on a path of superior growth with a sharper focus on enhanced performance parameters.
Balancing Growth and Profitability
The strategy is to balance VNB margin growth with customer base expansion, aiming for 'Insurance for All by 2047' while ensuring profitability.
Dividend Policy Sustainability
The Board recommended a final dividend of INR 10 per share (INR 20 pre-bonus), with management expecting the payout ratio to be sustained in the future.
Focus on Product & Channel Mix
Management aims to increase contribution from guaranteed business (non-par savings/protection) and annuity, while also tapping the market for ULIPs when opportunities arise.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Non-Par Share of Individual APE | 35.11% for FY26 | Sustained consolidation or further expansion of non-par share, indicating continued shift towards higher-margin business. |
| VNB Growth & Margin | VNB growth 41.63% YoY, VNB margin 21.2% for FY26 | Continued VNB growth and margin expansion, driven by product mix, increased ticket size, and persistency improvements. |
| Solvency Ratio & RBC Framework | 2.35 as of March 31, 2026 | Clarity on the new risk-based capital (RBC) framework and its implications for capital requirements and dividend policy. |
| Bancassurance & Alternate Channels NBP Growth | 45.19% YoY growth in FY26 | Continued strong growth and increasing contribution from these channels to diversify premium sources and improve channel mix. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
LIC aims to appoint at least one Bima Sakhi in every gram panchayat.
"Our objective is to appoint at least one Bima Sakhi in every gram panchayat"
LIC is confident of accelerating its efforts towards achieving “Insurance for All by 2047” through customer-friendly initiatives.
"confident that we'll be able to accelerate our efforts towards “Insurance for All by 2047”"
LIC is very confident of catching up and showing a good performance on the number of policies sold by the end of the current financial year.
"we are very confident by the end of the current financial year, we will be able to completely catch up"
Outcome check: Revenue YoY averaged 14.8% across 2 later quarter(s).
The full impact of the GST exemption on life insurance products will be seen in the coming quarters.
"believe that the full impact will be seen in the coming quarters"
Trend score and candlestick chart
41NeutralSMA20 -22.8% / mo · near 52W low
Technical chart
LICIweekly · 3Y-55.8%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 21. Wait for confirmation.
- SMA20 falling (~29.6% over last month) — short-term momentum negative.
- RSI(14) at 21 — oversold zone; bounce conditions.
- MACD below signal but histogram contracting — bearish momentum easing.
- Within 5% of 52-week low — testing support.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Fair-value margin of safety is positive at 73.1%.
- Quality contributes 18/20 to the score.
- Valuation contributes 23/30 to the score.
Main drags
- Altman Z is 0.3, in distress territory.
- Cash flow is weaker at 4/10; verify the latest quarterly trend.
- Balance sheet is weaker at 7/15; verify the latest quarterly trend.
Insurance valuation: embedded value and VNB quality
Insurance economics depend on long-duration book value and new-business profitability.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Management has 100% delivered/partly-delivered outcomes on 1 checked claims. It ranks around the 73rd percentile of the scored universe and 87th percentile within Financial Services. No major sub-score weakness stands out.
Healthy Trust Lite: Promoter holding is 96.5%. Key concern: Operating cash flow is negative at ₹-26211 Cr.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Financial Services: 87th pctile, median 62 · Large: 50th pctile, median 74
105 documents indexed, but claim history is not strong enough yet.
1/4 claims checked · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 96.5%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 1.7%.
- ▸8 years of positive FCF.
Trust risks
- ▸Operating cash flow is negative at ₹-26211 Cr.
- ▸Altman Z is 0.29.
- ▸ROCE trend is -18.6%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 8.71
- P/B
- 2.83
- EV/EBITDA
- 10.50
- Market Cap
- 500307.00Cr
Profitability
- ROE
- 37.80%
- ROCE
- 35.10%
- ROA
- 0.97%
- Dividend Y
- 2.53%
Growth (CAGR)
- Revenue 5Y
- 7.00%
- EPS 5Y
- 81.00%
- Revenue 3Y
- 8.00%
- EPS 3Y
- 17.00%
Balance Sheet
- Debt/Equity
- 0.00
- Interest Coverage
- —
- Altman Z
- 0.29
- Book Value
- 140.00
Cash Flow
- FCF Yield
- 1.70%
- FCF Positive Y
- 8/5
- OCF
- -26211.00 Cr
- EPS TTM
- 45.42
Shareholding
- Promoter Hold
- 96.50%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 27%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.