Life Insurance Corporation of India delivered exceptional Q4 FY26 results, with net profit rising 23% to ₹23,420 crore from ₹19,013 crore in the corresponding quarter of the previous fiscal year. As reported by Reuters, net premium income grew 11.5% to ₹1.65 lakh crore, while annualised premium equivalent sales rose nearly 22% to ₹22,954 crore for the quarter. The insurer's group business annualised premium equivalent sales surged 37%, demonstrating strong momentum in the group segment. Value of new business increased 67% to ₹5,891 crore, reflecting improved profitability from the company's continued focus on non-participating products. Within the individual business segment, participating (par) segment growth remained muted at around 1.8% YoY, while the non-par segment surged 44% YoY, led by new products and new product launches.
LIC's VNB margin reached 21.2% in FY26, implying a very strong 24.9% margin in Q4, with margins expanding by 360 basis points year-on-year. According to JM Financial, this improvement was led by 3 percentage points gain each from product mix and improved economic assumptions, though offset by 3 percentage points from operating assumptions. The company's solvency ratio improved to 2.35 during the quarter from 2.11 a year earlier, indicating a larger financial buffer. One-time premiums rose 21.5%, while first year premiums from new policies increased around 17%, supported by strong non-participating product sales and favorable yield curve movements.
Maruti Suzuki India announced a significant price increase across its vehicle portfolio, with prices set to rise by up to ₹30,000 from June 2026. According to reports from Upstox, the car leader cited inflationary pressures and an adverse cost environment as the primary reasons for the price hike. The company stated that the exact quantum of change will vary from model to model, and for the past few months, it has been making continuous efforts to mitigate cost impact through cost reduction measures.
LIC shares jumped up to 5% on May 22 following the strong quarterly results, with shares trading 2.5% higher at ₹819.8 at 9:35 am. Multiple brokerages raised target prices, with JM Financial increasing its target price to ₹960 from ₹888, citing strong VNB growth and improving margins. Bernstein set a target price of ₹900, while Citi gave a 'Buy' rating with target price of ₹1,475, noting that valuation remains benign with FY2027E projected core EV at levels higher than current market value. The strong performance was driven by continued momentum from last year's GST cuts and tax changes supporting insurance demand in India's largest insurance market. Moneycontrol reports that the strong premium growth, improving product mix, and margin expansion strengthen the case for a potential valuation re-rating.
