LIC’s 70 Years: From Monopoly to Financial Giant

Life Insurance Corporation of India (LIC) commemorates its 70th anniversary in 2026, marking its journey from a state monopoly to a prominent listed financial institution.

Established on September 1, 1956, through the amalgamation of 245 private life insurance companies, LIC initially aimed to provide affordable life insurance and financial protection across India.

Financial Performance in Focus

The corporation has demonstrated robust financial performance, adapting to significant economic and societal changes over seven decades.

• For fiscal year 2026, LIC reported a total premium income of ₹5,35,984 crore, marking a 9.80% increase.
• Its profit after tax reached a record ₹57,419 crore, which was up 19.25% from the previous period.
• LIC processed 25 million individual claims, including 24.1 million maturity and survival benefit claims.
• The individual death-claim settlement ratio stood at an impressive 99.44%.

Despite the liberalization of India’s insurance sector in 2000, which introduced intense competition, LIC has consistently retained market leadership.

• For FY2025-26, LIC held 56.66% of India’s life insurance market by first-year premium income.
• It commanded an extraordinary 70.11% in group business.
• The corporation also secured a 65.16% market share by the number of policies.

Driving Digital Transformation

Recognizing the evolving customer expectations, LIC has embarked on a significant digital transformation to enhance speed, convenience, and engagement.

• The ‘Milic App’ was launched in April 2026, providing policyholders with digital access to their portfolios and servicing.
• The ‘Super Sales Saatchi App’ was introduced for marketing intermediaries.
• LIC’s product portfolio has been modernized to include 52 products and eight riders, with recent additions such as Bama Lakshmi, Protection Plus, Bama Kavach, Jeevan Utsav, and New Jeevan Sathi.

Social Impact and Shareholder Value

Beyond business metrics, LIC demonstrates a commitment to social empowerment through initiatives like the ‘Bima Sakhi’ scheme.

• As of March 31, 2026, there were 2,83,249 active Bima Sakhis, covering 59% of India’s Gram Panchayats.
• Since its listing in 2022, LIC has rewarded shareholders, recommending a final dividend of ₹10 per equity share for FY26.
• The corporation also approved a 1:1 bonus issue to enhance liquidity and shareholder value.

Looking ahead, LIC focuses on adapting its product and distribution mix within India’s underinsured and increasingly competitive digital landscape. Its greatest asset, built over seventy years, remains ‘trust’ among its stakeholders.