Life Insurance Corporation of India Management Discussions

Management Discussion and Analysis

1. PREAMBLE

The Life Insurance Corporation of India has pleasure in presenting its 69^th Annual Report in terms of applicable provisions of the Life Insurance Corporation Act, 1956, Insurance Regulatory and Development Authority of India (Corporate Governance for Insurers) Regulations, 2024 (to the extent applicable) and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, for the Financial Year ended 31.03.2026.

2. GLOBAL ECONOMIC ENVIRONMENT

FY2025-26 was marked by continued geopolitical tensions, elevated policy uncertainty and a series of trade policy actions by major economies that sustained downside risks to global activity. Early CY2026 developments saw intermittent spikes in commodity prices on geopolitical risk premia, while financial markets remained sensitive to shifting expectations about the pace and sequencing of monetary policy easing in advanced economies.

Global inflation broadly continued its disinflationary path, unevenly across regions, inflation is expected to continue falling, dropping from 4.1% in 2025 to 3.8% in 2026, and further to 3.4% in 2027.

As per IMF Global Growth Projected to remain resilient at 3.3% in 2026 (matching the estimated 3.3% outturn in 2025) and slow slightly to 3.2% in 2027. The escalation of trade tensions and elevated policy uncertainty are expected to weigh on global trade and investment, with downside risks concentrated in advanced economies and spillovers to emerging markets.

Global inflation is expected to fall slowly over the medium term, but rising energy and food prices and growing trade tensions could slow that progress. Financial markets stayed volatile, and exchange rates moved both up and down, which affected how money flowed across borders and shaped investor confidence.

3. MACRO - ECONOMIC ENVIRONMENT IN INDIA

Our business, financial health, operating results, and cash flows are closely tied to macroeconomic conditions in India, where we conduct the vast majority of our operations and generate substantially all of our income. While stronger consumer confidence in the economy and in the life insurance sector generally supports our growth, adverse macroeconomic developments in India can negatively impact demand for our products, increase policy surrenders and withdrawals, reduce investment returns, and otherwise affect our operating performance.

Key macroeconomic drivers influencing the performance of Indias growing yet under penetrated life insurance industry include the countrys population trajectory and favourable demographics, the pace of urbanization, overall economic growth rates, household income growth, and consumer attitudes toward financial savings. These factors shape the proportion of household savings allocated to insurance products relative to competing options such as physical assets (real estate, gold) and financial instruments (bank deposits, provident funds, mutual funds). Macroeconomic conditions also influence the mix of investments across asset classes.

The macro environment includes trends in the Gross Domestic Product (GDP), inflation, employment, spending and monetary and fiscal policy.

(i) GDP Growth Rate: The rate of growth of Gross Domestic Product (GDP) directly impacts the insurance sector. A robust economy with higher GDP growth tends to drive demand for insurance products. Against the backdrop of a steady global growth amidst multiple headwinds, Indias GDP growth is estimated at 7.6 per cent for 2025-26, up from 7.1 per cent in the previous year.

On the demand side, private final consumption expenditure and fixed investment served as the key growth drivers. Although the imposition of US tariffs initially triggered concerns, their overall impact remained muted, with net exports exerting a modest drag of 0.1 percentage points on growth. On the supply side, a buoyant services sector and a robust manufacturing performance helped offset subdued agricultural activity.

(ii) Employment: Periodic Labour Force Survey (PLFS) and other high frequency indicators indicated an unemployment rate around the low single digits, with the Labour Force Participation Rate (LFPR) and Worker Population Ratio (WPR) reflecting higher participation in rural areas relative to urban areas.

Overall unemployment rate in urban areas for persons of age 15 years and above exhibited declining trend during the quarter January-March, 2026 compared to the last two quarters. It stood at 6.6% during the present quarter compared to 6.7% in the previous quarter while it edged up marginally to 4.3% from 4.0% in rural areas.

These labour market conditions underpin household income generation and the capacity to save and purchase financial products including life insurance.

(iii) Disposable Income: Disposable income refers to the amount of money individuals or households have for spending and saving after income taxes have been deducted. It is a key indicator of financial well-being and directly influences consumption patterns, savings behaviour, and overall economic demand.

SBI projects that the Code on Wages could raise workers disposable income and boost consumption by about Rs. 75,000 crore, thereby supporting economic growth.

A reduction in income tax rates, coupled with exceptionally low food price inflation over the past year, has resulted in households retaining significant disposable income. Increases in disposable income typically leading to higher consumer spending, which can drive economic growth.

(iv) Household Savings: The level of domestic household savings in a country affects the availability of funds for investment. Higher savings can lead to increased investments in insurance policies. The net household financial saving increased to 7.0 per cent of GNDI in 2024-25 from 5.8 per cent a year earlier, as the decline in household financial liabilities more than offset the moderation in gross financial savings.

Gross household financial saving moderated to 11.8 per cent of GNDI in 2024-25 from 12.1 per cent in 2023-24, while household financial liabilities fell sharply to 4.8 per cent of GNDI in 2024-25 from 6.4 per cent in the previous year. Instrument wise, household financial saving is dominated by deposits, followed by provident and pension funds, insurance, with a gradual increase in investment in shares and debentures.

(v) Household Financial Savings: The financial well-being of households plays a crucial role in shaping their capacity to purchase insurance. When households have surplus savings, they are more likely to invest in life insurance.

Life insurance continued to represent a meaningful share of household financial savings, driven by product innovation and distribution reach.

(vi) Inflation: Indias inflation remained largely under control during FY 2025-26, reflecting the resilience of the economy and the effectiveness of monetary and fiscal policy measures.

Retail inflation, measured by the Consumer Price Index (CPI), stood at 3.48% in April 2026, remaining below the Reserve Bank of Indias medium-term target of 4% and well within its tolerance band of 2% - 6%. Food inflation was recorded at 4.20%, while rural and urban inflation stood at 3.74% and 3.16%, respectively. The relatively benign inflation environment supported household consumption and economic growth, although emerging risks from global geopolitical tensions, rising energy prices, and monsoon uncertainties warrant continued vigilance. The RBI has projected average inflation at around 4.6% for FY 2026-27, underscoring confidence in maintaining macroeconomic stability while supporting growth.

(vii) Trade and Forex: World goods and services trade volume grew by 5.1 per cent in 2025, exceeding world GDP growth. Indias merchandise trade deficit widened to US$ 333.2 billion during 2025-26 (US$ 282.5 billion a year ago). A strong services trade surplus and a steady flow in private transfer receipts helped contain current account deficit (CAD) within a sustainable level of 1.0 per cent of GDP during April-December 2025. A modest current account deficit (CAD) and adequate forex reserves provided resilience to the external sector even as portfolio investment exhibited net outflows. There was a depletion of foreign exchange reserves (on a BoP basis) to the tune of US$ 30.8 billion during the period. Indias foreign exchange reserves (US$ 691.1 billion as at end March 2026) remained adequate in terms of the standard metrics of reserve adequacy, including import cover of about 11 months and external debt cover of 90.3 per cent, thereby providing buffer against adverse global spill overs. Despite tariff related uncertainty, Indias merchandise exports and imports (in value terms) expanded at higher pace in 2025-26 than in 2024-25.

Net FDI inflows stood at US$ 7.7 billion during 2025-26, higher than US$ 1.0 billion in 2024-25. Net FPI to India recorded an outflow of US$ 16.5 billion during 2025-26, driven by equity outflows, as against an inflow of US$ 3.3 billion in 202425.

(viii) Regulatory Changes: The Insurance Regulatory and Development Authority of India (IRDAI) is reshaping regulations to create a more transparent, resilient, and customer focused life insurance ecosystem.

The passing of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025 by the Parliament represents a significant milestone in the evolution of Indias insurance framework. By amending the Insurance Act, 1938, the Life Insurance Corporation Act, 1956, and the Insurance Regulatory and Development Authority Act, 1999, the Bill addresses the need for a modern, flexible, and inclusive regulatory architecture aligned with Indias long-term development priorities.

Allowing 100% foreign direct investment (FDI) in insurance makes India attractive to global insurers and is driving ownership restructuring and consolidation in the sector. Zero GST on individual life insurance is a significant policy change that brings greater clarity and consistency to the tax framework. On the other hand, the withdrawal of Input Tax Credit (ITC) has created short-term cost pressures.

Going forward, the move to a risk based capital framework represents a major step in strengthening the sectors resilience by aligning capital requirements more closely with actual risks. In addition, the adoption of Indian Accounting Standards (Ind AS) will place all Indian insurers within a globally harmonised financial reporting system converged with International Financial Reporting Standards (IFRS).

The overall reform agenda remains strongly customer-centric, reinforcing the principle that benefits to customers ultimately strengthen the industry by fostering trust, expanding penetration, and creating long-term value.

4. OUTLOOK ON THE LIFE INSURANCE INDUSTRY IN INDIA

The Indian insurance sector is entering a new era of robust mid-term growth, driven by strong macroeconomic fundamentals and rising consumer demand; according to a Swiss Re analysis "Indias economic and insurance market outlook 2026-2030: resilient and rising amid global shifts. Mid-term annual premium growth is forecast at 6.9% between 2026 and 2030, making India the strongest growing major insurance market.

Swiss Re forecasts that Indias insurance market will grow at an annual rate of 6.9% over 2026 to 2030 in real terms, higher than major emerging and advanced insurance markets.

Reforms by the Insurance Regulatory and Development Authority of India (IRDAI) and broader policy changes by the government are bringing more transparency and reshaping the industry structure for the next phase of accelerated growth.

For life insurance, where India is the second-largest life insurance market amongst the emerging economies, annual growth of 6.8% over the next 5 years is expected to come from widening distribution networks, increasing demand for retirement products and credit growth.

5. OPPORTUNITIES FOR INSURANCE INDUSTRY

(i) India has worlds largest population: As of 2025, India is the most populous country in the world, with an estimated population of approximately 1.46 billion people. This vast base provides insurers with the largest potential customer pool globally.

(ii) Favourable demographics: India continues to have one of the largest young populations in the world, with a median age of 28 years. About 87% of Indians will still be below the age of 60 by calendar 2031. CRISIL Report forecasts that 64% of them will be between 15 and 59 years. This demographic structure ensures sustained demand for protection, savings-linked products, and health insurance.

(iii) Urbanisation: In 2025, cities are home to 45 per cent of the worlds 8.2 billion people, more than double the 20 per cent share in 1950. Over the same period, the share of the global population living in towns declined from 40 to 36 per cent, and the share in rural communities fell by half, to just 19 per cent. Projections indicate that two-thirds of the worlds population growth between now and 2050 will occur in cities, with most of the remainder in towns, while the rural population is expected to peak in the 2040s before beginning to decline. Urbanisation of India is one of the most important drive as it will drive substantial investments in infrastructure development, which, in turn, is expected to lead to job creation, development of modern consumer services and increased ability to mobilise savings. An increase in urbanisation has led to improvement in the style of living and awareness to secure financial stability through saving and insurance.

(iv) Low Life Insurance Penetration and insurance density in India: Insurance penetration and density are two metrics, among others, often used to assess the level of development of insurance sector in a country.

Despite the strong growth in life insurance in India over the years, indicators such as insurance penetration and insurance density indicate that India is still under-insured as compared to Advance Asia Pacific countries such as South Korea, Taiwan, Singapore and Japan etc.

Source: IRDAI Handbook 2024-25, ¹Insurance penetration is measured as ratio of premium to GDP., insurance density is measured as ratio of premium (in US Dollar) to total population. # Data relates to F.Y. other data relates to calendar year.

(v) Opportunity: Increasing life expectancy, falling birth rates and wealth concentration among retirees will fuel demand for protection that provides guaranteed income, health and care coverage.

New approaches to product design for annuities, risk pooling and bundling care protection will be required to meet the changing needs of ageing populations.

By 2050, a high-income 65-year-old retiring in advanced markets could expect to live a further 23 years. Proportionately, for developing markets, too. This longer retirement, combined with a shift away from guaranteed returns on pension products, means retirees will have substantial savings but no guaranteed income, increasing the risk that they outlive their savings.

Various types of annuities exist to cover this increased longevity risk. However, a broader range of options may be needed to alleviate longevity risk. For example, longevity risk-sharing pools can address mortality, longevity, and health risks simultaneously.

Another urgent need will be cancer protection for older policyholders. The median age of cancer diagnosis is 67, yet most critical illness policies expire before retirement, leaving a protection gap just when the risk becomes highest.

6. BUSINESS PERFORMANCE

A. New Business

(i) Individual New Business

During the financial year 2025-26, the Corporation under Individual New Business, has procured 1,84,41,175 Policies with a New Business Premium Income of Rs.67,676 crore.

During the financial year 2025-26, 81.61 lakhs individual policies were sold to millennial customers. The percentage of individual policies sold to millennial customers to total number of individual policies sold is 44.26%.

(ii) Individual New Business Sum Assured

Individual new business sum assured represents the total sum insured by us for mortality and morbidity risks on the Individual new business written in a given period. During the financial year 2025-26, the Corporation sold total New Business Sum Assured of Rs.6,41,931.90 crore.

(iii) Rural Thrust

Sustained and conscious efforts are made to carry the message of Life Insurance to the rural areas, especially the backward and remote areas. As a result, there has been steady growth of New Business from these areas. The Individual New Business Premium from rural areas amounts to Rs.32,455.02 crore representing 48.05% of the new business completed during the Financial Year 2025-26. The definition of rural/social sector is as approved by Insurance Regulatory and Development Authority of India (IRDAI).

(iv) Individual Agent and POSP-LI (Conventional /Tied) Channel

During the Financial Year 2025-26, conventional channel garnered total Rs.61,977.32 crore new business premium and 181.49 lakh policies. Share of the channel in Corporations new business performance stood at 98.42% in policies and 91.75 % in New Business Premium.

(v) Bancassurance and Alternate Channels (B&AC)

B&AC Channel delivered a breakout year, crossing the Rs.5,000 crore FYPI milestone for the first time and outperforming budgets across key lines. Strong growth in Annuity and ULIP, expanded partnerships, and robust branch performance cemented B&ACs role as a growth engine within the Corporation.

The share of First year Premium Income to the Corporations Business has increased from 5.6% to 7.56%. During the year the Corporation has added 10 Banks, 12 (Other) Corporate Agents, 58 Brokers and 42 IMFs. Corporations total Partnership Universe for the channel now stands at 92 banks, 84 (Other) Corporate agents, 308 Brokers and 167 IMFs.

Both Banks and Other Alternates showed impressive growth in terms of Premium procurement over previous fiscal. Banks FYPI 3151.33 Crs (2576.74 Crs) Growth of 22.30%.

Other Alternates FYPI 1924.99 Crs. (919.36 Crs) Growth of 109.38%. Channel completed Micro Insurance Business of 89.07 Cr with 1,12,005 policies.

(vi) Digital Marketing

The Digital Marketing Channel commenced its operations w.e.f. 1^st June 2021. The channel was envisaged to provide a digitally smart and technology-driven platform requiring minimum human intervention. The entire customer on-boarding journey including pre-policy medical scheduling, Underwriting, payment mechanism and completion of the policy is paperless. The aim was to provide a seamless end-to-end buying experience to the customer, in tune with expectation of tech-savvy millennial.

During Financial Year 2025-26, the channel procured the following New Business:

Online Business: 10152 policies and First Premium of Rs.405.12 Crore.

National Pension System (NPS) - Funds Business: 4309 policies and First Premium of Rs.319.56 Crore.

At present the channel offers 24 products for online purchase. Out of 24 products 5 are for Protection, 4 for Annuity, 5 for ULIP and 10 for savings.

(vii) Pension and Group Schemes New Business Premium

Business Premium during the year 2025-26, the P&GS vertical completed 20,786 Schemes covering 5,71,12,431 lives with New Business Premium Income (NBPI) of 1,92,912.87 crore.

(viii) LICs Mahila Career Agent Scheme (LICs Bima Sakhi)

LIC had launched Mahila Career Agent Scheme (LICs Bima Sakhi) on 09.12.2024. The scheme aims to provide employment opportunities to women and provides them financial independence and the advantage of working as per their convenience and time. This is a stipendiary agency scheme for 3 years with monthly stipend of Rs.70007in First Year, Rs.6000/- in Second Year and Rs.5000/- in Third Year in addition to the commission payments. After 3 years, the agent will continue to work and earn commission and other benefits as per the rules. 2,83,249 Bima Sakhis were in-force as on 31.03.2026. In F.Y. 2025-26, Bima Sakhi Channel completed 21,94,392 policies with FYPI of Rs.3,768.83 Crore and stipend of Rs.515 Crore was paid. Bima Sakhis Business % Share to Total Business for NOP was 11.90% and for FYPI 5.62%.

B. AGENTS

(i) Agency Strength

The total number of Agents on our Roll is 14,57,045 as at 31.03.2026 as against 14,86,851 as on 31.03.2025. During the Financial Year 2025-26, total 2,66,071 agents were recruited out of which 2,03,636 agents were in the age group of 18-40 years.

(ii) Agents Club Membership

In order to motivate and recognize high and consistent performers amongst the agency force, various Clubs have been formed. The details of membership strength of the Clubs are furnished in the Table below:

MEMBERS OF VARIOUS AGENTS CLUB

Name of Club
Elite	42
Corporate	387
Galaxy	2,091
Chairman	45,208
Zonal Manager	35,586
Divisional Manager	49,780
Branch Manager	33,051
Distinguished Agents Club	8,323
Total	1,74,468

(iii) Career Agents Scheme

The Corporation has a scheme for Urban Career Agents and Rural Career Agents to promote the cause of professionalizing the Agency force. They are given stipends at the start of their career to enable them to settle down in the profession. As on 31^st March 2026 there are 292 Urban Career Agents and 23,287 Rural Career Agents.

City Career Agents Scheme was introduced in 2010 to provide all Development Officers an opportunity to recruit stipendiary Agents. As on 31^st March 2026 there are 4,884 City Career Agents.

(iv) Senior Business Associates (SBA)

The SBA Scheme was introduced in the year 2009 to recognize high-performing Development Officers and to empower them with certain financial and non-financial functions.

(v) LIC Associates Scheme (LICA)

The LICA scheme was introduced from 01.04.2016 with an objective to introduce an innovative distribution channel and strengthening the distribution system by gainfully redeploying the valuable marketing talent of retired Development Officers and Senior Business Associates depending on their cost.

(vi) Chief Life Insurance Advisor (CLIA)

LIC introduced the Chief Life Insurance Advisor Scheme 2008 on 12.04.2008 with the objective of increasing the market presence by utilizing the capabilities of existing high performing agents for growth in Agency and New Business.

(vii) New Business Procured through SBAs, LICAs and CLIAs during FY 2025-26

Particulars	Number of Policies	First Year Premium Income (Rs.in Cr)
SBA	38,13,178	12,161.95
LICA	14,83,703	5,432.35
CLIA	35,43,254	11,034.53

7. ANALYSIS OF FINANCIAL STATEMENTS (STANDALONE)

A. Income Statement Analysis

(i) Revenue Account (Policyholders Account)

The summary of Revenue Account of the Corporation for Financial Year 2025-26 along with comparative analysis is as follows:

			(Rs. in crore)
Particulars	Financial Year 2025-26	Financial Year 2024-25	Growth %
Net Premium Income	5,35,984	4,88,148	9.80
Income from Investments (Net)	4,31,708	3,92,623	9.95
Other Income	2,799	663	322.17
Contribution from Shareholders A/c - Towards Excess EOM	2,423	2,642	(8.29)
Total (A)	9,72,914	8,84,076	10.05
Net Commission	24,440	25,309	(3.43)
Operating Expenses	39,510	35,415	11.56
Provisions for doubtful debts (including bad debts written off)	(821)	(1,546)	(46.90)
Provisions for diminution in value of investments and Provision for doubtful Debt and Bonds	(818)	(627)	30.46
Goods & Service tax on linked charges	149	223	(33.18)
Provision for taxes	(4,173)	7,773	(153.69)
Benefits Paid (Net)	4,96,104	4,16,355	19.15
Change in actuarial liability	3,63,339	3,53,334	2.83
Total (B)	9,17,730	8,36,236	9.75
Surplus/Deficit (A-B)	55,184	47,840	15.35
Amount transferred from Shareholders Account (Non-Technical Account)	4,217	2,255	87.01
Amount available for appropriation	59,401	50,095	18.58
Appropriations
a. Transferred to Shareholders A/c	58,032	49,507	17.22
b. Funds for Future Appropriations	1,369	588	132.82

a. Premium Income

The following table sets forth summary of premium income at segment level for the period indicated:

											(Rs. in crore)
Particulars	Financial Year 2025-26						Financial Year 2024-25				Growth
	PAR	Non Par	Linked	CR AC*	Total	PAR	Non Par	Linked	CR AC*	Total	%
FY Premium	24,341	6,007	3,505	-	33,853	25,664	4,995	1,720	-	32,379	4.55
Single Premium	2,268	18,690	12,889	-	33,847	3,568	15,861	10,712	-	30,141	12.3
Total NBP	26,609	24,697	16,394	-	67,700	29,232	20,856	12,432	-	62,520	8.29
Renewal Premium	2,56,977	8,506	6,601	1	2,72,085	2,49,062	4,367	3,450	1	2,56,880	5.92
Total Premium (Individual)	2,83,586	33,203	22,995	1	3,39,785	2,78,294	25,223	15,882	1	3,19,400	6.38
P&GS Premium	-	1,96,963	-	1	1,96,963	-	1,69,449	-	-	1,69,449	16.24
Less : Reinsurance Ceded	109	632	23	1	764	100	589	12	-	701	8.99
Total Premium	2,83,477	2,29,534	22,972	1	5,35,984	2,78,194	1,94,083	15,870	-	4,88,148	9.80

(*CRAC - Capital Redemption and Annuity Certain)

Total premium increased by 9.80% from Rs.4,88,148 crore in FY 2024-25 to Rs.5,35,984 crore in FY 2025-26. Unit-Linked segment of Individual business had shown a strong growth by 44.75% from Rs.15,870 crore in FY 2024-25 to Rs.22,972 crore in FY 2025-26.

b. Investment Income: Net Investment income increased by 9.95% from Rs.3,92,623 crore in FY 2024-25 to Rs.4,31,708 crore in FY 2025-26 which includes interest, dividends and capital gains from investments made by LIC. The rental income from the Estate portfolio for the year 2025-26 is Rs.660 crore, which is an increase of 4.76% over the rental income for the last year.

c. Other Income: Other income increased by 322.17% from Rs.663 crore in FY 2024-25 to Rs.2,799 crore in FY 2025-26, due to interest on refund of income tax in FY 2025-26.

d. Total Income Analysis: Total Income increased by 10.05% from Rs.8,84,076 crore in FY 2024-25 to Rs.9,72,914 crore in FY 2025-26 primarily on account of an increase in premium income and investment income.

e. Commission expenses: The following table shows the comparative summary of commission expenses:

			(Rs. in crore)
Particulars	Financial Year 2025-26	Financial Year 2024-25	Growth %
First year commission	9,318	9,987	(6.70)
Single commission	952	760	25.26
Total	10,270	10,747	(4.44)
Renewal commission	14,177	14,562	(2.64)
Less : Reinsurance Ceded	7	-
Total Commission	24,440	25,309	(3.43)

Total commission decreased marginally by 3.43% from Rs.25,309 crore in FY 2024-25 to Rs.24,440 crore in FY 2025-26.

f. Operating Expenses related to insurance business: The following table shows the comparative summary of operating expenses:

			(Rs. in crore)
Particulars	Financial Year 2025-26	Financial Year 2024-25	Growth %
Salaries and other benefits to employees	27,889	26,896	3.69
Other Expenses of Management	11,621	8,519	36.41
Total	39,510	35,415	11.56

Total operating expenses increased by 11.56% from Rs.35,415 crore in FY 2024-25 to Rs.39,510 crore in FY 2025-26.

g. Benefits Paid: This includes death benefits, maturity benefits, annuity/pension payments, surrender, withdrawal, interim bonus paid and other claims to the policyholders.

A summary of benefits paid is as under: (Rs. in crore)

Particulars	Financial Year 2025-26	Financial Year 2024-25	Growth %
Claims by Death	24,885	24,420	1.90
Claims by Maturity & periodical benefits	2,79,951	2,37,313	17.97
Annuities / Pension	25,641	22,098	16.03
Surrenders
Non linked (Indl)	40,625	42,426	(4.25)
Linked (Indl.)	5,292	3,308	59.98
P & GS (surrender)	467	2,885	(83.81)
Total Surrenders	46,384	48,619	(4.60)
P&GS (Withdrawal)	1,10,347	82,287	34.10
Other Claim Cost (interest on unclaimed amounts) and others	539	(1,458)	136.97
Interim Bonus Paid	8,357	3,076	171.68
Total Benefits Paid	4,96,104	4,16,355	19.15

Total benefits paid increased by 19.15% from Rs.4,16,355 crore in FY 2024-25 to Rs.4,96,104 crore in FY 2025-26. The increase was primarily on account of an increase in maturity claims and interim bonus paid from Rs.2,37,313 crore and Rs.3,076 crore in FY 2024-25 to Rs.2,79,951 crore and Rs.8,357 crore in FY 2025-26 respectively.

(ii) Profit and Loss Account (Shareholders Account)

The summary of Profit and Loss Account of the Corporation for Financial Year 2025-26 along with comparative analysis is as follows: (Rs. in crore) ^•

Particulars	Financial Year 2025-26	Financial Year 2024-25	Growth %
Transfer from Policyholders Account	58,032	49,507	17.22
Total income under Shareholders Account
a. Investment Income	8,588	5,992	43.32
b. Other income	-	-	-
Expenses other than those related to insurance business	2,415	2,468	(2.15)
Contribution to Policyholders A/c	2,423	2,642	(8.29)
Amount transferred to Policyholders A/c	4,217	2,255	87.01
Provisions for doubtful debts (including write off)	-	-	-
Provisions for diminution in value of investments & Others	111	(18)	716.67
Profit before tax	57,454	48,151	19.32
Provisions for tax	35	-	-
Profit after tax and before Extraordinary Items	57,419	48,151	19.25
Extraordinary Items (Net of tax expenses)	-	-	-
Profit after tax and Extraordinary Items	57,419	48,151	19.25

Profit After Tax:

• Profit after Tax (PAT) for the year ended 31^st March, 2026 is increased by 19.25% to Rs.57,419 crore as compared to Rs.48,151 crore for the year ended 31^st March, 2025.

B. Financial Snapshot - Balance Sheet:

The summary of Balance Sheet of the Corporation for Financial year 2025-26 along with comparative analysis is as follows:

			(Rs. in crore)
Particulars	Financial Year 2025-26	Financial Year 2024-25	Growth %
SOURCES OF FUNDS
SHAREHOLDERS FUNDS:
Share Capital	6,325	6,325	-
Reserves and Surplus	1,69,925	1,20,096	41.49
Fair Value Change Account	(894)	(233)
TOTAL (A)	1,75,356	1,26,188	38.96
POLICYHOLDERS FUNDS:
Fair Value Change Account	5,02,788	6,47,540	(22.35)
Hedge Fluctuation Reserve	(847)	11
Policy Liabilities	51,00,260	47,35,580	7.70
Funds for Discontinued Policies
(i) Discontinued on Account of non-payment of premiums	1,510	791	90.90
(ii) Others	13	14	(7.14)
Insurance Reserves	23,133	15,670	47.63
Provision for Linked Liabilities	60,398	47,533	27.07
TOTAL (B)	56,87,255	54,47,139	4.41
Fund for Future Appropriations (C)	3,215	1,828	75.88
TOTAL (A+B+C)	58,65,826	55,75,155	5.21
APPLICATION OF FUNDS
Investment - Shareholders	1,50,740	1,04,026	44.91
Investments - Policyholders	53,33,262	5,136,279	3.84
Assets held to cover Linked Liabilities	61,897	48,312	28.12
Loans	1,29,848	1,27,480	1.86
Fixed Assets	4,736	4,461	6.16
NET CURRENT ASSETS	1,85,343	1,54,597	19.89
TOTAL	58,65,826	55,75,155	5.21

i) Reserve and Surplus: Reserve and Surplus (Shareholders fund) as at 31^st March, 2026 increased to Rs.1,69,925 crore from Rs.1,20,096 crore as at 31^st March, 2025. The increase of 41.49% is primarily due to increase in profit after tax.

ii) Fair Value Change Account: Fair Value Change Account (Policyholders fund) decreased from Rs.6,47,540 crore as at 31^st March, 2025 to Rs.5,02,788 crore as at 31^st March, 2026. The decrease of 22.35% is primarily due to mark- to-market movement in share prices during the current financial year.

iii) Policy Liabilities: Policy liabilities increased from Rs.47,35,580 crore as at 31^st March, 2025 to Rs.51,00,260 crore as at 31^st March, 2026. Policyholders liability depends upon the business profile and assumptions made about future mortality/morbidity, interest, expenses etc., at each point of time. The change in business profile happens due to policy exits, policy entry due to new business and existing policies getting closure on account of maturity.

iv) Provision for Linked Liabilities: Provision for linked liabilities (Policyholders fund) increased from Rs.47,533 crore as at 31^st March, 2025 to Rs.60,398 crore as at 31^st March, 2026. The Policyholders Linked Liabilities represents the unit liability in respect of Linked business and has been considered as the value of the units standing to the credit of the policyholders, using the Net Assets Value (NAV) as on valuation date.

v) Investments: The Corporation holds a significant portion of their assets in investments such as government securities, debentures, corporate bonds, mutual funds, equities etc. The summary of gross investments as at 31^st March, 2026 along with comparative figures are as follows:

		(Rs. in crore)
Particulars	FY 2025-26	FY 2024-25
Investments
a. Shareholders	1,51,601	1,06,961
b. Policyholders	53,81,725	51,63,997
Assets held to cover linked liabilities	60,240	47,119
Loans	1,35,830	1,34,220
Total Investments	57,29,396	54,52,297

Total investments grew by Rs.2,77,099 crore from Rs.54,52,297 crore as at 31^st March, 2025 to Rs.57,29,396 crore as at 31^st March, 2026. Total Equity Investment portfolio constitute Rs.15,23,197 crore and others Rs.42,06,199 crore as at 31^st March, 2026. Increase in policyholders investment portfolio is attributable to increase in premium and investment income offset by net outgo due to operating expenses and claims.

The yield on investments (on Policyholders fund) for the financial year 2025-26, without unrealised gains is 8.92% and yield on investments (on shareholders fund) for the financial year 2025-26, without unrealised gains is 6.61%.

vi) Fixed Assets: Fixed Assets (net of depreciation) have increased from Rs.4,461 crore as at 31^st March, 2025 to Rs.4,736 crore as at 31^st March, 2026.

vii) Net Current Assets: Net Current Assets have increased by 19.89% from Rs.1,54,597 crore as at 31^st March, 2025 to Rs.1,85,343 crore as at 31^st March, 2026.

C. Cash flow statement

The following table set forth, for the period indicated, a summary of the cash flows:

		(Rs. in crore)
Particulars	FY 2025-26	FY 2024-25
Net cash generated from/(used in) operating Activities	(25,398)	(6,756)
Net cash generated from/(used in) investing Activities	34,995	38,090
Net cash generated from/(used in) financing Activities	(7,589)	(3,794)
Cash and cash equivalent at the end of period	65,034	62,324

(i) Operating Activities

Net cash flow from operating activities is (Rs.25,398 crore) in FY2026 as against (Rs.6,756 crore) in FY2025 primarily on account of increase in policy benefits payments.

(ii) Investing Activities

Net cash flow generated from investing activities is Rs.34,995 crore in FY2026 as against Rs.38,090 crore in FY2025 primarily on account of an increase in purchase of investment from Rs.5,64,437 crore in FY2025 to Rs.5,98,274 crore in FY2026 and increase in investment in money market instruments from Rs.8,646 crore in FY2025 to Rs.26,539 crore in FY2026 offset in part by sale of investments etc.

(iii) Financing Activities

Net cash flow from financing activities is (Rs.7,589 crore) in FY2026 as against (Rs.3,794 crore) in FY2025 primarily on account of an increase in dividends paid.

D. Disclosure of Accounting Policies

Please refer Schedule 16(A) of Standalone Financial Statements in this Annual Report from Page No. 435 to 455.

E. Segment-wise Performance

Segment-wise Performance is available in the Financial Statements, which forms a part of this Annual Report.

8. KEY PERFORMANCE INDICATORS

Following are the key parameters on which performance of the Corporation can be measured:

(i) Market Share: Life Insurance Corporation (LIC) of India has historically held a dominant position in the Indian life insurance market. With its extensive network and over six decades long presence, LIC has maintained a substantial market share, i.e. 56.66% of the total life insurance business in the country as at 31^st March 2026 by Total First Year Premium Income. In term of Individual First Year Premium Income, LIC market share is 36.60%. P&GS Market Share in FYPI is 70.11%. While in policies LIC overall market share is 65.16%. This significant market share underscores LICs widespread reach, brand recognition and the trust it commands among Indian consumers.

While LIC faces increasing competition from private insurers, its market dominance remains resilient, supported by its wide range of insurance products, strong distribution network and government backing. However, ongoing market dynamics and regulatory changes may influence LICs market share over time, necessitating continuous strategic adaptation to maintain its competitive edge.

(ii) Product Mix: LIC offers a diverse portfolio of life insurance products catering to varied customer needs and preferences. Its product mix includes traditional endowment plans, whole life plans, term insurance plans, pension plans, unit-linked insurance plans (ULIPs) and microinsurance products. Traditional plans, such as whole life and money-back plans have been the cornerstone of LICs product offerings, providing long-term savings and protection benefits to policyholders.

In recent years, LIC has also introduced innovative products tailored to evolving market demands, such as unit-linked plans with investment options and whole life insurance plans with comprehensive coverage. This balanced product mix allows LIC to appeal to a broad customer base, ranging from individuals seeking basic life coverage to those interested in investment-linked insurance solutions.

Continuous product innovation, coupled with effective marketing strategies, enable LIC to maintain its leadership position and adapt to changing consumer preferences and market trends.

(iii) Distribution Mix: LICs extensive distribution network is one of its key strengths, facilitating widespread accessibility and customer outreach across urban and rural areas in India. The company operates through a multi-channel distribution framework encompassing agents, bancassurance partnerships and digital platforms.

LICs extensive network of agents, often referred to as insurance advisors, plays a pivotal role in reaching out to customers, educating them about insurance products and facilitating policy sales and servicing. Bancassurance tie-ups with leading banks, Corporate Agents, Brokers and Insurance Marketing Firms (IMF) further expand LICs distribution reach, enabling it to leverage the existing customer base of partner organizations.

In addition to traditional channels, LIC has embraced digitalization to enhance customer engagement and streamline distribution processes. The company offers online platforms and mobile applications for policy purchase, premium payments, claims processing, and customer service, catering to tech-savvy consumers and millennials.

By leveraging a diverse distribution mix, LIC effectively addresses the varying needs and preferences of its customer segments while ensuring widespread market penetration and customer satisfaction.

Technology Development: The Corporation has launched Super Sales Saathi App for Sales Intermediaries viz. Agents, Development Officers, CLIAs, LICAs and Chief Organizers in the month of August 2025. Super Sales Saathi App offers a comprehensive solution, encompassing Sales Saathi & ANANDA App with special focus on digital empowerment of our field force, enabling them with tools for business growth, customer servicing and performance tracking.

(iv) Assets Under Management (AUM): The Corporations consolidated AUM increased by 5.08% from Rs.54,52,297 crore as at 31^st March 2025 to Rs.57,29,396 crore as on 31^st March 2026.

(v) Expenses of Management Ratio

The Corporation continuously focuses on reduction in operating expenses. Total Expenses of Management Ratio decreased from 12.42% in FY 2025 to 11.91% in FY 2026.

(vi) Commission Ratio

The Corporation Commission Ratio marginally decreased from 5.18% in FY 2025 to 4.55% in FY 2026.

(vii) Profitability: Profit after tax (PAT) increased by 19.25% from Rs.48,151 crore in FY 2025 to Rs.57,419 crore in FY 2026.

(viii) Net Worth: During the Financial Year 2025-26, the net worth has increased by 38.96% from Rs.1,26,188 crore as at 31^st March, 2025 to Rs.1,75,356 crore as at 31^st March, 2026. The net worth of LIC is consistently increasing. The increase in net worth is on account of increased reserves.

Profitability and net worth are key indicators of the financial health and stability of Life Insurance Corporation (LIC) of India.

(ix) Earnings Per Share (EPS): EPS reflects the companys profitability on a per-share basis. Basic and diluted EPS has increased from Rs.76.13 as at 31^st March, 2025 to Rs.90.78 as at 31^st March, 2026.

(x) Solvency: Solvency ratio is a regulatory measure of capital adequacy for Indian Insurance Companies and is calculated by dividing an insurers Available Solvency Margin by its Required Solvency Margin, each calculated in accordance with IRDAI guidelines. The minimum Solvency Ratio required to be maintained is the control limit of 1.50, as set by the IRDAI. The Corporation Solvency Ratio (within India business) increased from 2.11 as at 31^st March, 2025 to 2.35 as at 31^st March, 2026.

(xi) Persistency: The 13^th month persistency for Individual Regular Premium Business, by premium, for 2025-26 is 74.64% as compared to 74.84% in 2024-25 and the 61^st month persistency for the same is 59.31% for 2025-26 as against 63.12% for 2024-25.

The 13^th month persistency for Individual Regular Premium Business, by number of policies for 2025-26 is 64.87% as against 64.12% for 2024-25 and the 61^st month persistency for the same is 46.88% for 2025-26 as against 50.31% for 2024-25.

(xii) Annualized Premium Equivalent (APE): The Corporation total APE in FY 2025-26 is Rs.66,961 Crore. This was Rs.56,828 Crore in FY 2024-25. Individual Non-PAR APE increased by 43.8% from Rs.10,581 crore in FY 2024-25 to Rs.15,214 crore in FY 2025-26.

(xiii) Value of New Business (VNB) and VNB Margin: VNB is an important metric of profitability as it reflects the additional value generated through the activity of writing new policies during any given period. VNB margin is the ratio of VNB to APE for the relevant period and is a measure of expected profitability of new business in percentage terms.

For FY 2025-26, the Corporations VNB and VNB margins are Rs.14,179 crore and 21.2% respectively. The corresponding figures for FY 2024-25 were Rs.10,011 crore and 17.6%.

(xiv) Indian Embedded Value (IEV): IEV increased by 1.58% from Rs.7,76,876 crore in FY 2024-25 to Rs.7,89,185 crore in FY 2025-26.

9. HUMAN RESOURCES:

a) Staff Strength

The number of employees of the Corporation as on 31.03.2026 is 84565 as against 91606 at the end of the previous financial year.

b) Empowerment of Women

24.12% of the workforce consists of women employees in different cadres. Our Central Office and all Zonal Offices and Divisional Offices have Internal Complaint Committee for the prevention of sexual harassment at workplace and all such committees are functioning effectively.

The Corporation is mindful of its responsibilities towards the weaker sections and adheres to all government Guidelines on reservation to Scheduled Caste/Scheduled Tribes and Other Backward Classes, persons with disabilities as well as Ex-Servicemen, Economically Weaker Sections.

10. PERFORMANCE OF SUBSIDIARIES & ASSOCIATES

A. Indian Subsidiaries and Associate:

Life Insurance Corporation of India has the following Subsidiaries and Associate Companies operating in India:

(i) LIC HOUSING FINANCE LIMITED (Associate - LICIs stake: 45.24%)

LIC Housing Finance Ltd. was incorporated in 1989. The Company provides long-term housing finance to individuals and finance to builders and developers. It has its Corporate Office in Mumbai and 10 Regional Offices, 23 Back Offices, 303 Marketing Offices and 1 Customer Service Point in the country and a representative office in Dubai. The Companys shares are listed on the Bombay Stock Exchange and the National Stock Exchange. The Company is rated ‘AAA Stable by CRISIL & CARE.

Total Assets of the Company is Rs.3,25,106 crore as at 31.03.2026. Loan disbursement for the year 2025-26 is Rs.66,544 crore. Outstanding loan portfolio as at 31.03.2026 is Rs.3,20,707 crore. Total Income for FY 2025-26 is Rs.28,771 crore and PAT as at 31.03.2026 is Rs.5,595.15 crore.

(ii) LIC HFL ASSET MANAGEMENT COMPANY LIMITED (Associate - LICIs stake: 5.38%)

LIC HFL Asset Management Company Limited was incorporated in 2008. LICHFL Asset Management Co. Ltd. manages Alternative Investment Fund (AIF) / Venture Capital Fund (VCF) as Investment Manager.

Total income for FY 2025-26 is Rs.25.60 crore and PAT is Rs.10.57 crore.

(iii) LIC MUTUAL FUND ASSET MANAGEMENT LIMITED (Associate - LICIs stake: 49.87%)

LIC Mutual Fund (the "Mutual Fund") has been constituted as a trust on 20.04.1989, with LIC of India as the Sponsor, LIC Mutual Fund Trustee Private Ltd. as the Trustee and LIC Mutual Fund Asset Management Ltd. as the Investment Manager to LIC Mutual Fund. With a network of 193 Investor service centres, 44 Area Offices and 242 Sales Team members, LIC MF is present in around 220 locations spread over length and breadth of the country.

In FY 2025-26, the Company launched two new funds - ‘‘LIC MF Consumption Fund" and "LIC MF Technology Fund". As of 31^st March 2026, LIC Mutual Fund has been managing 43 schemes. The average Assets under Management (AAUM) was Rs.43,499 crore as on 31.03.2026 and it ranked 23^rd in terms of AAUM in the Industry. Total income for FY 2025-26 was Rs.128.84 crore and PAT as at 31.03.2026 was Rs.10.51 crore.

(iv) LIC MUTUAL FUND TRUSTEE PRIVATE LIMITED (Associate - LICIs stake: 49.00%)

LIC Mutual Fund Trustee Pvt. Ltd. is the Appointed Trustee (corporate entity) and holds the fiduciary responsibility of LIC Mutual Fund. It functions as the Trustee Company to LIC Mutual Fund.

Total income for the year ended 31.03.2026 is Rs.0.55 crore and PAT as at 31.03.2026 is Rs.0.24 crore.

(v) LIC PENSION FUND LIMITED (Wholly-owned subsidiary of LIC)

LIC Pension Fund Limited was incorporated in 2007 under the Companies Act, 1956 by Life Insurance Corporation of India, and has its Corporate Office in Mumbai. It acts as a Fund Manager for managing the funds received from NPS Trust. LIC PFL started 2 schemes under the newly-introduced MSF (Multiple Scheme Framework) category during 2025-26.

The total Assets under Management (AUM) was Rs.4,22,359 crore as on 31^st March 2026. Total income for FY 2025-26 is Rs.180.26 crore and PAT as at 31.03.2026 is Rs.70.31 crore.

(vi) LIC CARDS SERVICES LIMITED (Wholly-owned subsidiary of LIC)

LIC Cards Services Ltd., (LIC CSL) was incorporated on 11^th November 2008. The Company has its Corporate Office in Delhi and 13 Area Offices in different locations across the country. LIC CSL is in the business of Marketing and Distribution of Co-branded Credit Cards in partnership with Axis Bank, IDFC First Bank, and IDBI Bank and Co-branded Gift Cards in partnership with Axis Bank and IDBI Bank. The Company has also entered into an Agreement with M/s. Pluxee India Private Limited (formerly Sodexo SVC India Private Limited) for issuing Meal Cards to employees of LIC.

Total Number of cards sold for the FY 2025-26 is 57,266 and No. of outstanding cards as on 31.03.2026 is 6,85,916. Total income for FY 2025-26 is Rs.31.60 crore and PAT as at 31.03.2026 is Rs.7.32 crore.

(vii) IDBI BANK LIMITED (Associate - LICIs stake: 49.24%)

Acquired as a Subsidiary in January 2019, the Bank became our Associate Company in December 2020. Headquartered in Mumbai, the Bank has a pan-India presence of over 2,200 branches and 3,000 ATMs. IDBI Bank is a full-service universal bank. The Bank is the largest Bancassurance partner of LIC.

Deposits as at 31.03.2026 is Rs.3,47,163 crore and Advances is Rs.2,53,626 crore. Total income for FY 2025-26 is Rs.35,743 crore and PAT as at 31.03.2026 is Rs.9,513 crore.

(viii) IDBI TRUSTEESHIP SERVICES LIMITED (Associate - LICIs stake: 29.84%)

IDBI Trusteeship Services Limited (ITSL) was incorporated in August 2000 and was registered with SEBI in 2001. ITSL provides a wide spectrum of trusteeship services to Corporates.

Total income for FY 2025-26 is Rs.103.66 crore and Profit for FY 2025-26 is Rs.54.83 crore.

B. Foreign Subsidiaries and Associate:

Life Insurance Corporation of India has the following Subsidiaries and Associate Companies operating in outside India:

(i) Overseas Subsidiaries:

1. Life Insurance Corporation (International) B.S.C. (c) was established in Bahrain as a subsidiary of Life Insurance Corporation of India. Shareholding of LIC of India in the Company is 99.66%. The operations commenced on 23^rd of July, 1989 and initially catered to the life insurance needs of Non-Resident Indians (NRIs) and later extended to the local population in the Gulf by issuing life insurance policies in US Dollars. The Company operates in 3 GCC countries of Bahrain, Kuwait and UAE (Dubai & Abu Dhabi). The Company sold 1,369 policies during Financial Year ending 31.12.2025 with a First Premium Income of Rs.175.98 Cr.

2. Life Insurance Corporation (Nepal) Ltd. is a subsidiary of LIC of India partnering with Vishal Group along with public shareholding and was established on 1^st of September, 2001. It is a listed Company whose shares are traded on the Nepal Stock Exchange. Shareholding of LIC of India in the Company is 55%. The Company sold 64,867 policies during Financial Year ending on 15.07.2025 with a First Premium Income of Rs.189.92 Cr.

3. Life Insurance Corporation (Lanka) Ltd. is a subsidiary of LIC of India partnering with Bartleet Transcapital Ltd. and was established on 7^th of October, 2002. Shareholding of LIC of India in the Company is 97.22%. The Company sold 5,224 policies during Financial Year ending on 31.12.2025 with a First Premium Income of Rs.14.15 Cr.

4. Life Insurance Corporation (LIC) of Bangladesh Ltd. is a subsidiary of LIC of India partnering with Strategic Equity Management Ltd. and Mutual Trust Bank Ltd. and is incorporated under the Companies Act (Act XVIII) of 1994 of Bangladesh on 14.12.2015. Shareholding of LIC of India in the Company is 83.33% The Company sold 2,522 policies during the Financial Year ending 31.12.2025 with a First Premium Income of Rs.2.99 Cr.

(ii) Foreign Wholly-Owned Subsidiary:

Life Insurance Corporation (Singapore) Pte. Ltd., a Wholly-Owned Subsidiary was incorporated on 30^th of April,

2012 in Singapore. The Company sold 275 policies during the Financial Year ending 31.12.2025 with a First

Premium Income of Rs.115.69 Cr.

11. ENTERPRISE RISK MANAGEMENT (ERM)

Life Insurance Corporation has a robust Enterprise Risk Management framework to conduct its business in an orderly fashion.

The framework considers all the risks faced by the Corporation and ensures that there are adequate systems, processes and trained personnel in place.

Organisation Structure:

Board of Directors provides the overall guidance on Risk Management and have delegated responsibility relating to Risk Management activities to Risk Management Committee (RMC).

Enterprise Risk Management Department supports Chief Risk Officer (CRO) in the implementation of Enterprise Risk Management framework laid down by RMC.

Risk Governance Framework:

Based upon the recommendations of the Risk Management Committee, the Board approves the Enterprise Risk Management Policy, Risk Appetite Statement, ALM Policy, Anti-Money Laundering Policy, Anti-Fraud Policy, Outsourcing Policy and Business Continuity Plan of the Corporation on an annual basis.

There are three lines of defence to manage the risks:

1 - Head of Departments (HODs) at Central Office who own the Risks,

2 - Enterprise Risk Management Department to review the risks

3 - Internal Audit, Statutory Audit, System Audit, IFC Audit, Concurrent Audit and Inspection function.

Key Risk Management Tool - ERM Module:

Enterprise Risk Management module is used to assess qualitative and quantitative risks and the resultant reports are discussed in the Committee of Executives on Risk Management (CERM) and Risk Management Committee (RMC).

Key Risk Management tools are Risk Appetite Statement, Risk Registers, Incident Management Framework (fraud monitoring), Top Risks and Key Risk Indicators. The tools are used by the three lines of defence and decisions are taken by the management to mitigate the risks.

Top Risks and Key Risk Indicators:

The top risks for the Corporation are identified by analysing the materiality / impact of key risks faced by the Corporation. The assessment of Key Risk Indicators is completed every quarter. The Top Risks and associated Key Risk Indicators are updated on an annual basis.

Business Continuity Management System (BCMS):

The Corporation also has Board-approved policies in place, including the Business Continuity Management Policy, Disaster Recovery Policy, and the BCMS Framework. The Business Continuity Management System (BCMS) is certified under ISO 22301 by the British Standards Institution on 22.05.2025, with the Surveillance Certificate obtained on 27.03.2026. The Risk Management Committee of the Board periodically reviews and evaluates the effectiveness of the BCMS framework, ensuring that strategies for minimizing the impact of any disaster are robust and appropriately managed.

Mitigation Strategies For Various Risks as Enterprise Risk Management Framework:

The Corporation is exposed to various risks which are categorized into 6 major risks namely Strategic, Financial, Operational, Reputational, ESG and Climate Risks. The enterprise risks are systematically identified and systems & procedures have been implemented to address these risks so that not only the policyholders funds are protected but also their reasonable expectations are met.

The Corporation has a well-established Enterprise Risk Management (ERM) framework in place to actively manage material risks. The ERM framework aligns the Corporations strategy and business decisions with risk appetite of the Corporation.

12. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Corporation has institutionalized a robust and comprehensive internal control mechanism through Audit, Inspection and Vigilance across key processes to ensure reliability of financial reporting, timely feedback on achievement of operational and strategic goals, compliance with policies, procedures, laws and regulations. The internal audit function provides independent and reasonable assurance about the adequacy and operating effectiveness of internal controls to the Board and Audit Committee. Internal Audits are conducted by an in-house Internal Audit team and by the co-sourced auditor (external Chartered Accountant Firms). The internal audit planning activity ensures coverage of the Corporation business process and transactions across all offices of the Corporation. Apart from aspect Audit, Information System (IS) Audit is conducted to identify system gaps and Internal Financial Control (IFC) Audit is conducted to assess the adequacy and effectiveness of existing level of controls. The IS Audit & IFC Audit are conducted by external Chartered Accountant firms.

The Inspection Policy approved by the Board stipulates that every office of the Corporation in India shall be inspected at least once a year by Officers of Inspection Department. The exercise of Inspection is a pre-emptive measure against systemic lapses.

The Corporation is committed to conducting its affairs in a fair, transparent, ethical manner, guided by highest standards of professionalism and integrity and has institutionalized a robust and comprehensive internal control mechanism through Audit, Inspection and Vigilance across key processes to ensure reliability of financial reporting, timely feedback on achievement of operational and strategic goals, compliance with policies, procedures, laws and regulations.

More focus was on preventive Vigilance through dissemination of information in areas susceptible to fraud.

As per guidelines of CVC, Integrity Pact (IP) is being implemented in procurement processes of our Organization. As regards Stores Purchase and Building Contracts, it is being ensured that CVC guidelines are strictly followed.

Proactive and Preventive Vigilance measures were taken in identifying systemic issues and suggestions made for corrective action to the respective Controlling Departments of Central Office.

13. OFFICIAL LANGUAGE IMPLEMENTATION

In the year 2025-26 Central Office of the Corporation has been awarded as the best public sector undertaking by the Ashirvad Literary and Social Organisation for the remarkable implementation of the official language Hindi in the office of the Government of India.

In the year 2025-26, the Central Office of the Corporation was awarded for excellent official language implementation by the Department of Financial Services, Ministry of Finance, Government of India.

04 Divisional offices of the Corporation were honoured with official language awards by the Department of Official Language, Ministry of Home Affairs, Government of India.

There is a Hindi Version of Annual Report available in this volume itself.

14. RIGHT TO INFORMATION (RTI) ACT, 2005

To ensure easy access to information to citizens of India, officers are designated as Central Public Information Officers (CPIOs) and First Appellate Authorities (FAAs) at various levels in the organization. LIC has 130 CPIOs and 130 Appellate Authorities.

The details of CPIOs and Appellate Authorities pan-India are available on LIC website at https://licindia.in/web/guest/rti-center.

CIC has accredited LIC as Grade "A" Organisation with 100% rating in the Transparency Audit of LICs website (www.licindia. in) for disclosures under Section 4(1)(b) of the RTI Act, 2005 for fifth consecutive year.

During the financial year 2025-26 8321 RTI applications, 1247 appeals and 208 CIC hearing cases have been attended.