The insurer is also exploring ways to monetise its large real estate portfolio while maintaining growth momentum. Additionally, LIC has been designated a Domestic Systemically Important Insurer (D-SII), reinforcing its critical role in the financial system. | Photo Credit: NIHARIKA KULKARNI/REUTERS

The board of directors of Life Insurance Corporation of India meets on April 13 (today) to consider and recommend a proposal to issue bonus shares to shareholders. If approved, it would be the first bonus issue from the insurance behemoth.

Analysts expect the announcement is likely post market hours.

The move will benefit nearly 21 lakh retail investors, who currently hold around 1.52 per cent stake in the company.

Strong Q3 performance

Life Insurance Corporation of India (LIC) had reported a 17 per cent year-on-year increase in its Q3 standalone net profit to ₹12,958 crore amid robust growth in premium income and income from investments.

Net premium income was up 17.5 per cent at ₹1,25,613 crore. Net income from investments rose 14 per cent to ₹1,07,608 crore. The Assets Under Management (AUM) increased to ₹59,16,680 crore as on December 31, 2025, from ₹54,77,651 crore on December 31, 2024, registering an increase of 8.01 per cent.

Dinesh Pant, MD, had then said that, given that the equity market gained almost 10 per cent, the corporation was able to book a good amount of profit without disturbing the portfolio’s intrinsic value.

FY25 earnings growth

For FY25, the Corporation had psoted an 18 per cent y-o-y increase in net profit at ₹48,151 crore (₹40,676 crore in FY24).

Further, the insurance company said it was planning to optimise its real estate holdings (market value estimated at about ₹45,000 crore) by increasing rental income and exploring structures such as Real Estate Investment Trusts (REITs).

Industry performance and outlook

According to JM Financial, in Feb’26, industry retail weighted premiums (RWRP) increased 21 per cent y-o-y to ₹11,300 crore. LIC outperformed the private sector with 23 per cent y-o-y growth—after reporting robust 61 per cent y-o-y retail APE growth in Q3-FY26. LIC was one of the favourite stocks for JM Financial, which retained its Buy rating with a target price of Rs 1,111, said

D-SII designation

Recently, the Insurance Regulatory and Development Authority of India (IRDAI) has designated Life Insurance Corporation of India (LIC), New India Assurance Company Ltd, and General Insurance Corporation of India as Domestic Systemically Important Insurers (D-SIIs) for FY26.

Published on April 8, 2026