LIC’s Q4 Profit Skyrockets 18.38% to Rs 48,151 Crore; Final Dividend Declared, Huge Bonus for Policyholders!

LIC Q4 Results 2025: Life Insurance Corporation of India (LIC), the country's largest insurer, posted a strong financial performance for the fiscal year ending March 31, 2025. The company reported a Profit After Tax (PAT) of Rs 48,151 crore, marking an 18.38% year-on-year increase, driven by healthy growth in new business premiums, improved margins, and operational efficiencies.

LIC Q4 Results 2025: New Business Premium Grows 8.28%

LIC's Individual New Business Premium stood at Rs 62,495 crore, reflecting a growth of 8.28% compared to the previous year. The Value of New Business (VNB), a key metric that indicates the profitability of new policies sold, rose by 4.47% to Rs 10,011 crore. Additionally, the VNB Margin (Net) improved by 80 basis points to 17.6%, underscoring the corporation's continued focus on value-driven growth.

LIC Final Dividend: Bonus Distribution to LIC Policyholders

The insurer also declared a substantial bonus payout to policyholders amounting to Rs 56,190.24 crore, reinforcing its commitment to policyholder returns. LIC's Board of Directors recommended a final dividend of Rs 12 per share for FY2025.

One of the notable highlights of the year was the significant rise in Non-Participating (Non-Par) Annualized Premium Equivalent (APE), which grew by 50.28% to Rs 10,581 crore. The share of Non-Par APE within the Individual business segment surged by 937 basis points to 27.69%, signaling a strategic shift towards higher-margin products.

In terms of efficiency, LIC managed to bring down its expense ratio to 12.42% in FY2025, a reduction of 315 basis points from 15.57% in FY2024. This cost discipline has played a vital role in boosting profitability and enhancing shareholder value.

The insurer's Indian Embedded Value (IEV), a measure of the consolidated value of shareholders' interest in the life insurance business, increased by 6.81% to Rs 7,76,876 crore. Furthermore, Assets Under Management (AUM) grew by 6.45% year-on-year to Rs 54,52,297 crore, reinforcing LIC's position as a dominant player in the Indian financial landscape.

Life Insurance Corporation Solvency Ratio Improvement in FY2025

LIC also strengthened its solvency ratio, which improved to 2.11 from 1.98 in the previous fiscal, indicating a robust capital position and ample financial cushion to meet future obligations.