Last week, Life Insurance Corporation of India (LIC) announced a 1:1 bonus issue alongside its Q4 FY26 results, boosting investor confidence. The state-owned insurer reported a consolidated net profit of Rs 23,467 crore for the fourth quarter, marking a 23% year-on-year increase from Rs 19,039 crore in the same period last year.
The company's net premium income rose 12% to Rs 1.65 lakh crore, compared to Rs 1.48 lakh crore in the previous year. For the full financial year ending March 31, 2026, LIC's assets under management grew over 5% to Rs 57.29 lakh crore, while net profit surged more than 19% year-on-year to Rs 57,419 crore.
LIC has set May 29 as the record date to determine shareholder eligibility for the bonus issue, which will allocate one fully paid-up equity share of Rs 10 for every existing share held. The announcement has led to a 6% gain in LIC shares over two sessions.
Brokerages have responded positively to LIC's performance. Citigroup maintained a 'Buy' rating with a target price of Rs 1,475 per share, citing improvements in the non-par product mix and yield curve benefits. Bernstein retained a 'Market Perform' rating with a target price of Rs 900, noting strong revenue growth and improved margins.
JM Financial also maintained its 'Buy' rating, raising the target price to Rs 960 per share, highlighting LIC's diversifying product mix and growth resilience. The stock has gained 2% over the past month but remains down 7% over the last six months.
Background
LIC's recent financial performance and strategic initiatives reflect its efforts to maintain a competitive edge in the insurance sector. The company's focus on product innovation and expanding its distribution channels is crucial as it seeks to align more closely with private-sector peers.
As LIC continues to strengthen its market position, investors should watch for further developments in its product innovation and distribution strategies. The company's efforts to enhance agent productivity and expand its network could drive future growth.
