LIC Allocates Record ₹59,725 Crore Bonus to Policyholders for FY26

State-owned insurance behemoth Life Insurance Corporation of India (LIC) has announced a massive windfall for its customers, allocating a record-breaking bonus of ₹59,725 crore for the financial year 2025-26.

This marks a solid 6% increase compared to the ₹56,331 crore bonus declared in the previous fiscal year. In addition to this annual allocation, the insurer also disbursed an interim bonus of ₹8,356.71 crore during the middle of the year. The company clarified that this aggregate bonus amount will be credited directly to the accounts of eligible participating policyholders and will be paid out as part of their final financial benefits at the time of policy maturity or death claim settlement.

Sustained Market Dominance and Strengthening Margins
Beyond the record bonus payouts, LIC continued to fiercely defend its undisputed leadership position across the Indian life insurance sector throughout the last financial year. The corporation successfully captured a 56.66% market share in first-year premium income and an even larger 65.16% share in terms of the total number of new policies sold nationwide. The company’s internal financial health also showed highly positive momentum, driven by a strategic shift in its product mix:

Value of New Business (VNB): Registered a stellar 42% year-on-year growth, surging to ₹14,179 crore.

VNB Margin: Expanded significantly from 17.6% to 21.2%, signaling strongly enhanced corporate profitability and operational efficiency.

Annual Premium Equivalent (APE): Climbed to ₹66,961 crore, heavily propelled by a rapid and targeted increase in the sales of high-margin, non-participating insurance products.