Life Insurance Corporation of India has announced a major reward package for shareholders after reporting record earnings for FY26, including a 1:1 bonus share issue and a final dividend payout.

LIC Announces 1:1 Bonus Shares And Final Dividend After Record FY26 Profit

Shareholders To Benefit From Bonus Allotment, ₹10 Dividend And Strong Earnings Momentum

Life Insurance Corporation of India has announced a major reward package for shareholders after reporting record earnings for FY26, including a 1:1 bonus share issue and a final dividend payout.

The announcement comes as the insurance giant continues to strengthen profitability, premium growth and investment income, reinforcing its position as India’s largest life insurer.

The developments have drawn significant attention from investors, especially those tracking eligibility timelines for the bonus allotment and dividend payout.

LIC Approves 1:1 Bonus Share Issue

LIC’s board has approved a bonus issue in the ratio of 1:1, under which shareholders will receive one additional fully paid-up equity share of face value ₹10 for every existing equity share held.

The company has fixed Friday, May 29, 2026, as the record date for determining eligible shareholders.

The deemed date of allotment of bonus shares has been scheduled for Monday, June 1, 2026.

Since Indian stock exchanges will remain closed on Thursday, May 28, due to the Bakri Id holiday, investors wishing to qualify for the bonus issue must purchase LIC shares on or before Wednesday, May 27, 2026.

What The Bonus Issue Means For Shareholders

Under the approved structure, shareholders will effectively see their shareholding double after the bonus allotment.

For instance, an investor holding 50 LIC shares before the record date will receive an additional 50 shares after the bonus issue, increasing the total holding to 100 shares.

Although the stock price generally adjusts proportionately after a bonus issue, such announcements are often viewed positively by markets because they improve liquidity and reflect management confidence in the company’s long-term business outlook.

Analysts believe the move could also increase retail participation in the stock by making the share price relatively more affordable after adjustment.

LIC Announces Final Dividend For FY26

Apart from the bonus shares, LIC’s board has also recommended a final dividend of ₹10 per equity share of face value ₹10 each for FY26.

On a pre-bonus basis, the effective payout translates to ₹20 per share.

The dividend proposal remains subject to shareholder approval during the company’s upcoming 5th Annual General Meeting.

LIC has fixed Thursday, June 25, 2026, as the record date for determining shareholders eligible for the final dividend payout.

The dividend announcement highlights the insurer’s strong cash generation capabilities and improving profitability profile.

LIC Reports Record FY26 Profit

The shareholder reward announcements were accompanied by a strong financial performance for both the March quarter and the full financial year.

LIC reported a consolidated net profit of ₹23,420.43 crore for the quarter ended March 2026, marking a year-on-year growth of 23.18 per cent.

For the full financial year FY26, consolidated net profit rose 19.25 per cent to a record ₹57,419 crore compared to ₹48,151 crore in FY25.

The company’s strong earnings growth was supported by healthy premium collections and rising investment income.

Premium And Investment Income Continue To Grow

LIC’s net premium income during the March quarter rose 12 per cent year-on-year to ₹1.65 trillion.

Meanwhile, net investment income increased 17 per cent year-on-year to ₹1.09 trillion, reflecting improving returns from the company’s massive investment portfolio.

Market experts believe LIC’s improving profitability trends indicate better operational efficiency, disciplined product strategy and stable long-term demand in the life insurance sector.

The company continues to benefit from its dominant market position, extensive distribution network and strong brand trust across India.

ICICI Securities Retains ‘Buy’ Rating

Following the results, ICICI Securities retained its “Buy” recommendation on LIC stock and revised its target price upward to ₹1,280 per share.

The brokerage increased its valuation multiple to reflect LIC’s improving operational performance and stronger business metrics.

According to the brokerage, the revised valuation is based on 0.8 times FY28 estimated embedded value of ₹10.1 trillion, compared to 0.75 times earlier.

Analysts Positive On Future Growth Prospects

ICICI Securities expects LIC to deliver annual premium equivalent (APE) growth of nearly 12 per cent during FY27 and FY28.

The brokerage also forecasts value of new business (VNB) margins of around 21 per cent over the next two financial years.

Analysts believe further improvement in profitability, product mix and investment returns could support additional upside for the company.

The brokerage added that LIC’s embedded value sensitivity to market declines has improved compared to earlier estimates, indicating better balance sheet resilience.

LIC Stock Remains In Focus

Despite Wednesday’s decline in the share price amid broader market weakness, LIC remains one of the most closely watched public sector financial stocks in India.

Investors are likely to continue tracking developments related to the bonus allotment, dividend approval and future growth guidance over the coming quarters.

With strong profitability, improving margins and shareholder-friendly capital allocation, LIC’s latest announcements have reinforced optimism surrounding the company’s long-term growth trajectory.