Life Insurance Corporation of India Directors Report

Board Report

Dear Members,

Your Board of Directors ("Board") is pleased to present the 69^th Annual Report of Life Insurance Corporation of India ("the Corporation" or "LICI" or "LIC"), together with the audited financial statements for the year ended March 31, 2026.

Your Corporation continues to deliver strong and consistent financial performance, underpinned by a robust solvency margin and a well-diversified investment portfolio which plays a vital role in fostering financial security, strengthening financial literacy, and advancing financial inclusion, thereby contributing meaningfully to Indias Economic Development. As the largest life insurer in India, the Corporation is widely recognised for its financial strength, stability, and extensive outreach. Through its comprehensive suite of life insurance products and services, it effectively addresses the evolving needs of millions of policyholders across the country.

1. Highlights of Financial Performance:

The highlights of the standalone financial performance of the Corporation for the financial year under review are presented below:

			(Rs. in crore)
Particulars	2025-26	2024-25	Growth (%)
New business Premium
First Year Premium	41,935.30	37,025.38	13.26
Single Premium	2,18,677.67	1,89,760.11	15.24
Renewal Premium	2,76,135.59	2,62,063.43	5.37
*Gross Premium	5,36,748.56	4,88,848.92	9.80
Less: Reinsurance	(764.34)	(700.75)	9.07
Net Premium	5,35,984.22	4,88,148.17	9.80
Investment & Other income	4,36,929.73	3,95,927.98	10.36
Total Income	9,72,913.95	8,84,076.15	10.05
Profit after Tax (PAT)	57,418.55	48,151.17	19.25

*It includes Individual and Group Business premium. Other Key Parameters: ^*

Particulars	2025-26	2024-25	Growth (%)
Corporations Annual Premium Equivalent (APE) (Rs. in crore)	66,961.00	56,828.00	17.83
Assets under Management (Rs. in crore)	57,29,395.73	54,52,296.67	5.08
Embedded Value (Rs. in crore)	7,89,185.00	7,76,876.00	1.58
‘Solvency Margin	2.35	2.11	-

*Solvency margin (within India business) is calculated before considering the proposed final dividend for the Financial Year

2. Capital and Shareholding:

The Authorised Share Capital of the Corporation is Rs.25,000 crore divided into 2,500 crore shares of Rs.10/- each and the issued, subscribed and paid-up equity share capital of the Corporation as at March 31, 2026 is Rs.6324,99,77,010 comprising of 632,49,97,701 equity shares of the face value of Rs.10/- each. The Corporation has not issued any fresh equity shares during the financial year under review.

The Board of Directors of the Corporation in its meeting held on April 13, 2026, inter-alia, considered and approved the issuance of bonus equity shares in the proportion of 1:1 subject to the approval of the members of the Corporation, and the same was approved by the members on May 17, 2026 by way of Postal Ballot. The results of the postal ballot along with scrutinizers report were declared on May 18, 2026. The Board of Director in its meeting held on May 21,2026 had delegated the authority to the Stakeholders Relationship Committee to approve the allotment of bonus equity shares to members. Subsequently, the Stakeholders Relationship Committee of the Board of the Corporation in its meeting held on June 01, 2026, had allotted 632,49,97,701 fully paid up bonus equity shares of Rs.10/- each in the proportion of 1:1, i.e., 1 (One) fully paid up bonus equity share for every 1 (One) fully paid up existing equity share to those members whose names appeared in the Register of Members / Register of Beneficial Owner as on record date i.e., May 29, 2026 by capitalizing Rs.6324,99,77,010/- out of the Reserves and Surplus of the Corporation available as at December 31,2025, in accordance with the approval received from the members by way of postal ballot on May 17, 2026. The said bonus equity shares ranked pari passu in all respects with the existing equity shares of the Corporation.

Consequent to the allotment of bonus shares, the issued, subscribed and paid-up equity share capital of the Corporation has increased to Rs.12649,99,54,020/- divided into 1264,99,95,402 equity shares of the face value of Rs.10/- each.

3. Dividend and Appropriation:

Dividend

The Board of Directors of your Corporation has recommended a final dividend of Rs.10/- (100%) per equity share on 1264,99,95,402/- equity shares of Rs.10/- each, for FY 2025-26, subject to the approval by the members of the Corporation in the 5^th Annual General Meeting. The final dividend on equity shares, if approved by the members, would involve a cash outflow of Rs.12649.99 crore which translates into a dividend pay-out ratio of 22.03%.

Pursuant to Regulation 12 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations" or Listing Regulations"), the Corporation is mandated to remit all dividend payments through electronic modes only. Consequently, physical payout options like dividend warrants or demand drafts have been entirely discontinued.

In terms of Regulation 43A of the SEBI Listing Regulations, the Corporation has formulated a Dividend Distribution Policy ("Dividend Policy"), which has been approved by the Board of Directors. The Dividend Policy of the Corporation is also available on the website of the Corporation and the link to the Dividend policy is provided in Annexure ‘I at Page no. 235 of this Annual Report.

Appropriations

Particulars	FY 2025-26	FY 2024-25
Profit after Tax (PAT)	57,418.55	48,151.17
Appropriations :-
Balance at the beginning of the year	1,20,067.43	75,711.26
Less: Final Dividend paid for the FY 2024-25	(7,590.00)	(3,795.00)
Profit carried forward to the Balance Sheet	1,69,895.98	1,20,067.43

4. Products:

Your Corporation offers a wide variety of products, which fulfil the needs of different customer segments of the society. During the financial year 2025-26, the Corporation introduced a total of Nine (9) new Insurance products. These details are as follows:

S. No.	Product Name	Category
1	LICs Nav Jeevan Shree-Single Premium	Individual
2	LICs Nav Jeevan Shree	Individual
3	LICs Jan Suraksha	Individual
4	LICs Bima Lakshmi	Individual
5	LICs Protection Plus	Individual
6	LICs Bima Kavach	Individual
7	LICs Jeevan Utsav Single Premium	Individual
8	LICs Group Term Ease Plan	Group
9	LICs Group Benefits Secure Plan	Group

The Corporation introduced the following Two (2) new individual riders during the financial year 2025-26

S. No. Product Name	Category
1 LICs Critical Illness Health Rider	Individual
2 LICs Female Critical Illness Benefit Rider	Individual

In addition to launching new products, the Corporation introduced modified versions of Five (05) existing Individual Products during the financial year 2025-26. These modifications were undertaken to enhance product features, improve customer value propositions and align with evolving market needs and regulatory requirements. The following are the name of the modified products:

S. No.	Name of Products
1.	LICs New Endowment Plan
2.	LICs Nav Jeevan Shree
3.	LICs New Jeevan Anand
4.	LICs New Jeevan Shanti
5.	LICs Jeevan Akshay - VII

As at the end of the financial year 2025-26, the Corporation had following product categories available for sale:

Product Categories	No. of Products
Individual Products	36
Group Products	14
Individual and Group Products	01
Individual Riders	07
Group Rider	01
Total Offerings	59

5. Persistency:

High persistency leads to strong customer loyalty and LIC has always been working to improve the persistency by taking decisive and corrective measures to arrest lapsation of the polices through various customer contact/loyalty programs, educating the customers the need for insurance and also the need to keep the policies in force.

To institutionalize this focus, persistency metrics have been integrated into the Key Performance Indicators (KPIs) and performance-linked incentives across all levels, thereby ensuring alignment throughout the Corporation.

Persistency for Individual Regular Premium Business by premium and number of policies is as under:

By Premium:

• The 13^th month persistency decreased from 74.84% in FY 2024-25 to 74.64% in FY 2025-26, indicating a slight decline of 0.2%.

• The 61^st month persistency decreased from 63.12% in FY 2024-25 to 59.31% in FY 2025-26, a drop by 3.81%.

By Number of Policies:

• The 13^th month persistency improved from 64.12% in FY 2024-25 to 64.87% in FY 2025-26 reflecting a modest improvement of 0.75%.

• The 61^st month persistency decreased from 50.31% in FY 2024-25 to 46.88% in FY 2025-26, indicating a reduction of 3.43%.

6. Research/Strategy and Corporate Planning:

The department conducts regular analysis of developments in the life insurance and financial sectors to assess its implications for LIC and policyholders. It monitors market dynamics, emerging business opportunities, and changing customer preferences to provide strategic insights. Regulatory and legal developments are examined to evaluate any potential impact on the

Corporation. In collaboration with other departments, the research & strategy team formulates the Corporations Five-Year Business Plan, taking into account domestic and global insurance trends, macroeconomic factors and sensitivity analyses to develop a robust strategic framework. Business forecasting, benchmark industry best practices and carry out detailed studies on marketing and advertising trends across insurance products to support informed decision-making and sustainable growth is also undertaken.

To remain competitive in a dynamic business environment, an assessment of the Strengths, Weaknesses, Opportunities, and Threats (SWOT) of the Corporation is made and strategies are worked out accordingly. Planning and Performance Budgeting (PPB) is a key initiative in this direction. Business Responsibility and Sustainability Report (BRSR) given its statutory and ESG significance, is collated and got approved from the reasonable assurance provider by the Corporation.

To monitor developments in the evolving economic landscape, a quarterly e-magazine, ENVOSCAN, is published. A comprehensive repository of business data in the form of a FACT BOOK is maintained for the benefit of the user Departments.

7. Customer Relationship Management:

(A) Policy Servicing:

Servicing of policies is one of the most critical elements in the value chain of life insurance. Your Corporation is actively committed to delivering the highest level of customer experience to its policyholders.

LIC has strong presence with 2048 Branch offices and 1584 Satellite offices across the country. Additionally, initiatives such as ‘Anywhere Services enable customers walk into any LIC branch and avail services, irrespective of the servicing branch of their policy. With the widespread network across every corner of the Country, customers enjoy convenient access to in-person services. Moreover, a strong presence of agents and other market intermediaries ensures ease of access, prompt assistance, and an enhanced overall service experience.

Customers can also conveniently access LIC services online through LIC Digital App or through Customer portal at www.licindia.in. To facilitate seamless online premium payments, LIC offers a wide range of options including Net Banking, Credit Cards, Debit Cards, UPI, and e-wallets. Customers may also choose automated payment facilities such as Auto Debit, e-NACH. In addition to the above, premium is payable digitally through Banks and Third Party Applications as operating units under Bharat Connect ecosystem using their payment platform either through "view and pay option" or "register and pay" (Unified Presentment Management System).

Policyholders can remit premiums at LIC Branch Offices and Satellite Offices through Cash or Cheque, as well as by using card swiping machine available at selected branches. In addition, offline premium payments through cash or cheque can be made at Premium Collection Centers operated by eligible Agents, Development Officers, and Senior Business Associates (SBAs). Entities like IDBI Bank, Axis Bank, City Union Bank, Suvidha Infoserve, MP Online, APT Online and CSC are also authorized to accept premium.

LIC operates a centralized 24x7 Call Center, accessible at 022-68276827, to provide continuous support to its policyholders. Assistance is available in eight regional languages namely Bengali, Gujarati, Kannada, Malayalam, Marathi, Odia, Tamil and Telugu in addition to English and Hindi, ensuring inclusive customer service.

LICs Service related information is also available through SMS. Customers can send an SMS in the format LICHELP<POLICYNO> to mobile no. 9222492224, upon which an LIC official from the Customer Zone will contact them and assist in addressing their service requirements. Additionally, customers can avail LIC services through WhatsApp at 8976862090. LICs Customer Zones serve as a single point of contact for customer support and grievance resolutions. With 74 Customer Zones operating across India from 8:00 a.m. to 8:00 p.m., LIC ensures timely assistance and effective resolution of customer queries and service requests.

To strengthen customer authentication and prevent fraud, LIC has integrated with various repositories. These integrations help reduce turnaround time and enable efficient service delivery. LIC continues to enhance customer engagement and provide a seamless service experience, through various digital engagement and initiatives.

LIC has established a robust and customer friendly feedback and complaint resolution mechanism for its policyholders. Policyholders can conveniently lodge and track their complaints online. Complaints registered through the Insurance Regulatory and Development Authority of India (IRDAI)s Grievance Management System, ‘Bima Bharosa are seamlessly integrated with LICs Complaint Management System.

The Corporation has designated Grievance Redressal Officers (GROs) at the Branch, Divisional, Zonal and Central Office levels to address policyholders concerns/grievances effectively. The details of GROs are readily available on LICs official website. Policyholders can meet the respective GROs in person every Monday between 2:30 p.m. to 4:30 p.m., without prior appointment and on other working days with prior appointment.

LIC continuously strives to enhance customer engagement and deliver a superior service experience to its policyholders at every touchpoint.

(B) Claims Related Performance:

Effective Customer service plays a vital role in retaining Clients, fostering long term relationship, and enhancing the Corporations reputation. By leveraging technology, your Corporation continuously strives to enhance the trust and ensure that policyholders feel supported throughout their journey with the Corporation. Your Corporation continuously engages in communication with the policyholders by providing timely updates, addressing queries and concerns with empathy and professionalism, and offering personalized interactions to deliver seamless and responsive service.

During the financial year 2025-26, the Corporation has settled 253.91 lakh claims amounting to Rs.3,12,770.86 Crore (including Individual, Micro Insurance and Pension & Group Schemes). Notably, 100% of these payments were made through digital mode primarily via NEFT.

A detailed summary of benefits paid to the policyholders is provided in the Management Discussion and Analysis at Page no. 204 of this Annual Report.

8. Information Technology:

i. Customer Digital Services Ecosystem

Enhancing customer convenience and expanding digital access remained a key focus area during FY 2025-26. As customer expectations increasingly shift towards seamless, self-service, and anytime-anywhere engagement, LIC further strengthened its digital servicing ecosystem through the launch and expansion of multiple technology-enabled platforms.

A significant milestone during the year was the launch of the MyLIC App, which has emerged as a comprehensive digital servicing platform offering a wide range of policyholder services, including premium payments, loan servicing, loan repayments and revival, AutoPay management, profile and KYC updates, policy document downloads, online purchase journeys, family and policy addition facilities, and personalized customer dashboards. Nearly 95% of customer journey volumes have already been enabled through the platform, reflecting substantial progress in the Corporations digital servicing transformation journey.

The platform witnessed strong customer adoption, recording more than 19.4 lakh downloads across Android and iOS platforms and average daily login volumes of approximately 75,000 users. Customer response has remained encouraging, with the application securing a rating of 4.7 on the Google Play Store based on over 70,000 user reviews. Customer access channels were further strengthened through the introduction of WhatsApp-based premium collection services, while technology-enabled outreach initiatives were leveraged to improve customer engagement and policy persistency.

The growing acceptance of alternative servicing channels is reflected in the fact that nearly 80.10% of renewal premium transactions during FY 2025-26 were collected through digital and non-digital channels outside LIC branches. These initiatives are supporting the creation of a more accessible, responsive, and customer-centric digital ecosystem while reducing dependence on physical servicing channels.

ii. Sales & Field Force Digital Enablement

Strengthening the productivity and effectiveness of LICs extensive distribution network remains central to the Corporations growth strategy. During FY 2025-26, significant investments were made towards enhancing digital capabilities available to agents, supervisory personnels, and sales management teams.

The launch of the Super Sales Saathi App marked an important step in this direction by providing integrated digital enablement to approximately 14 lakh agents, around 47,000 supervisory personnels, and nearly 8,000 hierarchy users. The platform offers business intelligence dashboards, lead management capabilities, campaign management tools, incentive monitoring, MDRT tracking, digital marketing support, micro-sites, and Team 360 dashboards aimed at improving sales productivity and strengthening customer engagement.

Digital onboarding capabilities were further strengthened through Nav-ANANDA, a technology-enabled platform facilitating paperless and customer-friendly onboarding of new business through Aadhaar-based e-KYC integration. The platform crossed 23 lakh policies during FY 2025-26, registering a growth of more than 50% over the previous year. Notably, the number of policies sourced through the platform during the year exceeded the total policy issuance of any individual private life insurer during the same period, demonstrating the scale and effectiveness of LICs digital onboarding ecosystem.

The Corporation also strengthened its MarTech capabilities through data-driven customer engagement initiatives. Approximately 70 crore communications were delivered during the year, covering nearly 30 crore outreach instances and achieving around 69% open/read rates and nearly 80% delivery success rates. The platform presently supports 13 customer campaigns and 152 agent-focused campaigns across multiple communication channels, enabling targeted outreach for renewal reminders, AutoPay registration, maturity servicing, revival initiatives, and reinvestment opportunities. These initiatives are enhancing distribution effectiveness, strengthening customer engagement, and supporting scalable business growth through technology-enabled sales processes.

iii. Smart Branch Transformation

Improving branch efficiency and modernizing service delivery channels remain important components of LICs broader digital transformation agenda. To support this objective, the Corporation commenced pilot implementation of the Digital Branch Portal during FY 2025-26.

The initiative is designed to transform branch operations through digitized workflows, centralized service management, enhanced visibility, and streamlined customer servicing processes. Key foundational capabilities implemented include Employee Single Sign-On (SSO), automated user provisioning, advanced access controls, SLA-based employee dashboards, and integrated customer service dashboards.

Several customer-centric servicing capabilities have also been operationalized through the platform, including NEFT updates without cheque submission, Aadhaar-based address updates, mobile and email validation, and one-click servicing journeys. These initiatives are reducing manual intervention, improving turnaround times, and enabling a more efficient and responsive branch operating environment.

The Digital Branch Portal represents an important step towards creating a technology-enabled branch ecosystem capable of delivering superior service experiences while enhancing operational efficiency.

iv. Data Lake and Analytics

Data is increasingly emerging as a strategic asset for driving business growth, improving customer engagement, and enabling informed decision-making. In line with this vision, LIC has undertaken enterprise-scale modernization through its Enterprise Data Lakehouse initiative.

The initiative is aimed at creating an integrated data and analytics ecosystem capable of consolidating information from diverse business systems and enabling enterprise-wide analytical capabilities. Key deliverables developed during the year include Customer 360 and Agent 360 analytical frameworks, intelligent product recommendation capabilities, renewal campaign enablement, and Artificial Intelligence (AI)/Machine Learning (ML)-based analytical reports such as "Agents Like Me".

By enabling a unified view of customers, agents, and business operations, the initiative is strengthening data-driven decision-making across the Corporation. These capabilities are supporting improved customer engagement, targeted business interventions, enhanced productivity monitoring, and more effective strategic planning.

v. Artificial Intelligence, Machine Learning & Intelligent Automation

Emerging technologies such as AI, ML and intelligent automation are increasingly playing a critical role in enhancing operational efficiency, customer experience, and service delivery capabilities. LIC is leveraging these technologies across multiple business functions to improve scalability, responsiveness, and process effectiveness.

AI and ML-enabled automation solutions are currently being utilized across Claims Operations and Office Services functions for automating repetitive processes, improving operational monitoring, and enabling intelligent anomaly detection. Building upon the success of these initiatives, the capability is being extended to Policy Servicing and Marketing functions.

Al-enabled voice communication systems have been implemented for maturity claim intimations and NEFT registration related communications, facilitating proactive customer outreach and improved servicing efficiency. The solution is also being extended to premium payment reminder communications. An AI-based Proposal Form Data Extraction solution is under implementation to improve proposal processing accuracy, reduce manual intervention, and accelerate onboarding timelines. Additionally, an AI-driven Email Analytics platform is being operationalized to support intelligent classification and prioritization of customer communications and grievance handling.

Advanced digital verification mechanisms based on facial matching, liveness detection, and UIDAI-based authentication have also been deployed to strengthen security and trust in digital transactions. Further, co-browsing capabilities have been introduced to provide real-time assistance to customers navigating digital servicing journeys.

vi. Process Digitization & Paperless Operations

Simplification of business processes and reduction of manual dependencies remain key priorities in LICs digital transformation journey. During FY 2025-26, several initiatives were undertaken to digitize customer-facing and backoffice processes, thereby improving efficiency, transparency, and service delivery.

Straight Through Processing (STP) was implemented for NEFT payments, enabling automated processing of 2,83,037 cases during the year. Automation of bank reconciliation processes further strengthened operational controls and improved processing efficiency. Aadhaar-based data extraction capabilities were also leveraged for Direct Benefit Transfer schemes covering 8,44,347 pension policies.

Customer-facing process transformation initiatives included online loan against policy services and the launch of ‘Prabalan, an online revival portal designed to facilitate digital revival of eligible lapsed policies. The online loan facility facilitated settlement of 8266 number of loan requests in a span of 45 days since its enablement.

These initiatives are contributing towards faster processing, improved customer convenience, enhanced transparency, and continued progress towards paperless operations.

vii. IT Infrastructure Modernization

A robust and scalable technology infrastructure remains fundamental to supporting LICs growing digital ecosystem and expanding business requirements. During FY 2025-26, significant investments were made towards strengthening core infrastructure capabilities across computing, storage, networking, and data centre environments.

A major milestone during the year was the operationalization of ‘MeghRath, the Corporations private cloud platform, with more than 840 active virtual machines supporting enterprise applications and digital services. Infrastructure modernization efforts also included augmentation of data centre capabilities, enhancement of network infrastructure, and deployment of enterprise-wide Patch and Vulnerability Management solutions.

Database Activity Monitoring (DAM) capabilities were implemented to strengthen infrastructure governance and operational reliability. These efforts contributed towards achieving 100% network uptime across Data Centres and an overall network uptime of 99.5% during FY 2025-26.

The strengthened infrastructure foundation is enhancing scalability, resilience, and service availability while providing a robust platform for future technology innovation.

viii. Information & Cyber Security

As digital adoption expands and cyber threats continue to evolve globally, strengthening cyber resilience and protecting customer information remain strategic priorities for the Corporation. During FY 2025-26, multiple initiatives were undertaken to enhance security governance, threat detection capabilities, and protection of critical information assets.

A comprehensive Identity Governance and Administration (IGA) solution was implemented to strengthen enterprise-wide access management and governance controls. Significant progress was also achieved in protecting sensitive customer information through Aadhaar Data Masking, resulting in masking of over 14.03 crore Aadhaar numbers. Additional measures included implementation of Data Classification (DC) and Data Loss Prevention (DLP) solutions, deployment of Endpoint Detection and Response (EDR) capabilities across Windows and Linux environments, and strengthening of database security through Database Activity Monitoring (DAM).

Cyber defence capabilities were further enhanced through implementation of an integrated Threat Detection and Incident Response (TDIR) framework comprising Security Information and Event Management (SIEM), Security Orchestration, Automation and Response (SOAR), User and Entity Behaviour Analytics (UEBA), Network Detection and Response (NDR), Packet Capture (PCAP), Cyber Threat Intelligence (CTI), Cyber Threat Hunting (CTH), and Endpoint Detection and Response (EDR) technologies. In parallel, Network Security Tools (NST) including Network Access Control (NAC), Secure Socket Layer Orchestrator (SSLO), Web Application Firewall (WAF), Server Load Balancer (SLB), Mobile Device Management (MDM), and Cloud Access Security Broker (CASB) were implemented to strengthen enterprise security architecture.

These initiatives have significantly enhanced the Corporations capability to prevent, detect, respond to, and mitigate cyber threats while strengthening data protection, regulatory compliance, customer trust, and operational resilience

By undertaking the various activities towards strengthening the digital footprint & applications to push digital policy issuance under the directions of the Board of Directors, Corporation aims to transition from a traditional life insurer to a tech-enabled financial solutions provider and take LIC to the next era.

9. Human Resource:

As on March 31, 2026, the Corporation has a total of 84,565 employees on roll which includes 20,404 female employees (constituting 24.12% of total employees). The details are as under:

Particulars	Male	Female	Total
Class I	21,148	6,634	27,782
Class II	16,839	1,848	18,687
Class III	25,554	11,665	37,219
Class IV	620	257	877
Total	64,161	20,404	84,565

Prevention of Sexual Harassment of women at the workplace:

The Corporation remains firmly committed to maintaining a safe, inclusive, and respectful work environment. In accordance with the provisions of the Sexual Harassment of Women at Work Place (Prevention, Prohibition and Redressal) Act 2013, the Corporation has implemented a range of initiatives designed to enhance the status of women and support their economic and professional empowerment.

Women officers and employees have made significant contributions across all levels of LIC, playing an integral role in the Corporations sustained growth and success. To ensure a safe and respectful workplace, the Corporation has constituted Internal Complaints Committee at the Central Office, Zonal Offices, and Divisional Offices to provide all reasonable assistance to the aggrieved employees.

These committees function in accordance with the statutory framework of the Act, ensuring prompt and fair redressal of complaints, if any. In addition to grievance redressal, the Committees also conduct regular awareness and sensitization programs to educate employees and foster a culture of dignity, mutual respect, and inclusion in the workplace. The summary of complaints as at March 31,2026 are as under:

Number of complaints pending at the beginning of the year	02
Number of complaints received during the year	16
Total Number of complaints	18
Number of complaints disposed during the year	13
Number of complaints pending at the end of the year	05*

*As on the date of this Report, all the pending complaints were closed

10. Internal Audit and Inspection Framework:

Internal Audit:

The Corporations Internal Audit function is overseen by the Internal Audit Department at the Central Office ("CO"), Mumbai. Thirteen Audit Centres across the country conduct audits under the supervision and monitoring of the Central Office. In addition, the CO Audit Department also coordinates and conducts audits of various departments within the Central Office.

To enhance professionalism and objectivity in the audit process, the Corporation introduced a revised audit approach from the FY 2022-23, under which one-third of the Divisional Offices and their corresponding Branch Offices, including P&GS units, are audited annually by Chartered Accountant ("CA") firms. The Audit by CA Firms is conducted on rotational basis, ensuring that all units are covered at least once in a three-year cycle. This practice continued in FY 2025-26.

Audit exercises across units are carried out using department-specific audit questionnaires, which are updated annually to incorporate the latest circulars, revised guidelines, policy changes, and operational developments. These questionnaires also include checks related to Internal Financial Controls ("IFC") for each Corporation level, i.e., Branch, Division, Zone, and Central Office.

Key audit findings are regularly shared with the respective functional heads at the Central Office, who issue corrective instructions to operational units and implement systemic control improvements, wherever necessary. During FY 2025-26, the Corporation conducted audit relating to Internal Financial Control (IFC), and Information System (IS). The findings of these audits were discussed with the Statutory Auditors and subsequently placed before the Audit Committee for review and guidance.

Additionally, under the Corporations Fraud Monitoring Framework, all fraud cases involving amounts exceeding Rs.1 crore are reported to the Risk Management Committee of the Board ("RMCB") through the Central Fraud Monitoring Committee and the Committee of Executives for Risk Management (CERM).

Internal Inspection:

The Corporation has in place a Board-approved Inspection Policy, which mandates that every office in India including Satellite Offices, Branch Offices, Divisional Offices, Zonal Offices, and the Central Office is inspected at least once a year by officers of the Inspection Department.

This inspection mechanism serves as a critical tool for identifying, reporting, and rectifying systemic lapses, and plays an important role in maintaining operational efficiency, compliance, and accountability across all levels of the Corporation.

During the year under review, inspection of all offices were completed by March 16, 2026.

In addition to individual office assessments, common irregularities identified during the inspection process were consolidated and shared with the Heads of Departments at the Central Office, to enable systemic improvements and implementation of preventive measures across the Corporation.

The Corporation continues to strengthen its inspection and monitoring processes to uphold transparency, governance standards, and service quality across its extensive network of offices.

11. Internal Financial Controls:

The Corporation has established adequate and effective internal financial controls which is operating effectively for ensuring the accuracy and completeness of the accounting records relevant to the preparation and presentation of the financial statements.

The Corporations internal financial control over financial reporting is a structured process designed to provide reasonable assurance regarding the reliability of financial reporting and preparation of financial statements for stakeholders, in accordance with Generally Accepted Accounting Principles (GAAP). The Corporations internal control framework includes a set of policies and procedures that

• pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflects the transactions and dispositions of the assets of the Corporation;

• provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Corporation are being made only in accordance with authorizations of management and Directors of the Corporation; and

• provides reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Corporations assets that could have a material effect on the financial statements.

12. Awards & Recognitions:

The Corporation has received several awards and accolades during the year 2025-26 across diverse areas, including recognition as one of the Most Trusted Brands of India, excellence in Digital and Social Media Strategies, Corporate Communication Excellence in the Insurance Sector, Best use of Channels and Mediums. Corporation has also been honoured for Best PR/ Marketing Campaign for spreading Life Insurance, Excellence in Agency Distribution, Excellence in Claims Service, and recognition as Smart Insurer and Leading Life Insurer (Large). Further, the Corporation received accolades in the areas of National PSU Leadership & Governance Excellence, among others. These recognitions underscore the Corporations unwavering commitment to excellence, innovation, and strengthening stakeholder trust. Some of the key awards & recognitions received during the year are as follows:

Awards & Recognitions:

• LIC is recognized as Most Trusted Brands of India Award by Marksmen Daily

• Awarded in 2 categories at 3^rd Great India Corporate Communication leaders summit by Transformance

• Great Indian Organization-Digital and Social Media Strategy

• Great Indian Organization-Corporate Communication Excellence in the Insurance Sector;

• Awarded at Pitch BFSI Marketing Summit & Award 2025 by Exchange4media for Best Use of Channels & Mediums (for Best Media Interaction TV, Print, Radio, Outdoor, PR, Direct Marketing and Digital);

• Awarded for Best CTV Campaign for Customer Acquisition -2025 Award by Agency Reporter;

• LIC awarded at Most Impactful Campaign Award by Quoraverse;

• Awarded in three categories by CMO Asia:

• Best PR/Marketing Campaign for spreading Life Insurance

• Excellence in Agency Distribution

• Excellence in Claims Service

• Awarded Dhanam Life Insurer of the Year 2025 by Dhanam Business Media;

• Awarded Smart Insurer in Life Insurance (Large) for the year 2025 by ET Now;

• Awarded Indias leading Life Insurance Company (Large) Award by Dun & Bradstreet;

• Awarded National PSU Leadership & Governance Excellence Award by Times Aspire Unicom Network Pvt. Ltd.;

• Forbes recognized Life Insurance Corporation of India as one of the Worlds Best Employers 2025;

• Times Strategic Solutions Ltd. through ET Edge BFSI Best Brands 2026 recognized LIC as one of the Best BFSI Brands 2026 under Category Life Insurance Brands

Brand Ranking:

S. No.	Ranking	Brief Details	Source
1	1st	Trusted Brand 2025 ( One of the Top 5 Insurance Life Services)	Readers Digest Trusted Brand, Sept 2025
2	2nd	Indias Largest Companies	Fortune 500 India
3	4th	Most Valuable Indian Brand	Brand Finance 2025
4	6th	Indias Most Profitable Companies 2025	Business Today (Bt500)
5	8th	Strongest Indian Brand	Brand Finance 2025
6	10th	Most Valuable Indian Brands 2025	Kantar Brandz
7	169th	Top 500 most valuable Global Brands (Last year 2024-25 Rank 177th)	Brand Finance 2026

13. Subsidiaries and Associate Companies:

As on March 31, 2026, the Corporation has three wholly owned subsidiary companies, four subsidiary companies and six associate companies. The Corporation does not have any material subsidiary. There were no entities that became or ceased to be subsidiaries or associates of the Corporation during the year. The brief details about business of the wholly owned subsidiaries, subsidiaries and associates are as under:

S. No. Name of the entity	Nature of entity	Business activity	% of shares held by the LIC
1 LIC Cards Services Limited ("LICCSL")	1Wholly owned subsidiary	LIC CSL markets and distributes Credit Cards of Channel Partner Banks (IDBI Bank; Axis Bank; IDFC First Bank) to the Policyholders, Employees and Agents of the Corporation and the general public.	100%
		They have co-branded with Axis Bank and IDBI Bank for issue of gift cards. The Company has also entered into an Agreement with M/s Pluxee India Private Limited for issuing co-branded Meal Cards to employees of LIC and proposes to extend the similar arrangements to the other Public Sector Undertakings and Banks.
2 LIC Pension Fund Limited ("LICPFL")	1Wholly owned subsidiary	LIC PFL carries on the business of Pension Fund Management for pension fund schemes as regulated by the Pension Fund Regulatory and Development Authority (PFRDA).	100%
3 Life Insurance Corporation (Singapore) Pte. Ltd. ("LIC Singapore")	2Wholly owned subsidiary	LIC Singapore is engaged in the business of life insurance.	100%
4 Life Insurance Corporation (International) B.S.C. (c) ("LIC Bahrain")	3Subsidiary	LIC Bahrain is engaged in the business of life insurance in Bahrain and GCC countries.	99.66%
5 Life Insurance Corporation (Lanka) Limited ("LIC Lanka")	3Subsidiary	LIC Lanka is engaged in the business of life insurance.	97.22%
6 Life Insurance Corporation (Nepal) Ltd. ("LIC Nepal")	3Subsidiary	LIC Nepal is engaged in the business of life insurance.	55%
7 Life Insurance Corporation (LIC) of Bangladesh Limited ("LIC Bangladesh")	3Subsidiary	LIC Bangladesh is engaged in the business of, among other things, life insurance services by carrying out life and supplementary health coverage, providing accident benefit and pension insurance business under individual and group schemes and all kinds of guarantee and indemnity business.	83.33%
8 LIC Mutual Fund Trustee Private Limited ("LICMF Trustee")	4Associate	LICMF Trustee functions as the Trustee Company to LIC Mutual Fund.	49%
9 LIC Mutual Fund Asset Management Limited ("LICMF Asset Management")	4Associate	LICMF Asset Management acts as Investment Managers for schemes of LIC Mutual fund.	49.87%
10 LIC Housing Finance Limited ("LICHFL")	4Associate	LICHFL is engaged in the business of providing long term finance to any person or persons, company or corporation, society or association and, in particular, to holders of policies issued by LIC of India, to construct or purchase a house or flat for residential purpose, and also provides long term finance to persons engaged in the business of construction of houses or flats for residential purpose to be sold by them by way of hire purchase or on deferred payment or other similar basis.	45.24%
11 LIC HFL Asset Management Company Limited ("LICHFL AMC")	4Associate	LICHFL AMC manages Alternative Investment Fund (AIF) / Venture Capital Fund (VCF) as investment manager.	5.38%
12 IDBI Bank Limited ("IDBI Bank")	4Associate	IDBI Bank is engaged in the business of banking in all forms within and outside India.	49.24%
13 IDBI Trusteeship Services Limited ("ITSL")	4Associate	ITSL provides a wide spectrum of trusteeship services to corporates. ITSL also extends the monitoring facility of listed pledged shares for loan against shares, escrow and facilitate agency services.	29.84%

11ndian wholly owned subsidiary companies; ²foreign wholly owned subsidiary company; ³foreign subsidiary companies and ⁴Indian associate companies

The Corporation also operates directly through its branch offices in Fiji (Suva and Lautoka), Mauritius (Port Louis) and United Kingdom (Watford). The LIC Branch situated in United Kingdom (Watford) has ceased to sell new policies w.e.f., June 21,2024 and currently is in run off mode whereas LIC (Singapore) Pte. Ltd, has ceased to sell new policies and is in run off mode w.e.f. October 01,2025.

The Branch Office of the Corporation situated at International Financial Service Centre (IFSC) in GIFT City, Gandhinagar, Gujarat, commenced operations on February 27, 2026

Bifurcation of Funds:

Section 24 of the LIC Act, 1956, mandates the Corporation to maintain separate funds for participating and non-participating policyholders and Section 28 of the LIC Act, 1956, stipulates the maintenance of these funds, outlines the allocation of surpluses as follows:

i. Participating Policyholders Fund: 90% or a higher percentage of surplus is to be allocated or reserved, for the participating policyholders, with the remaining surplus going to the members; and

ii. Non-Participating Policyholders Fund: 100% of the surplus is allocated or reserved for the members.

The above provisions were made effective for the funds of the Corporation in India. However, in the three overseas branches (Fiji, Mauritius and United Kingdom), a single policyholders fund is maintained, and the surplus distribution between policyholders and shareholders is set as per local laws of the respective countries, in terms of applicable provisions of LIC Act, 1956.

In accordance with the provisions of Listing Regulations, the Board of the Corporation has approved a policy for determining the materiality of subsidiaries, both within India and outside India. These policies can be accessed on the Corporations website, and the link of these policies are available in Annexure ‘l at Page no. 235 of this Annual Report.

Details regarding financial position and performance of the Corporations wholly owned subsidiaries, subsidiary companies and associate companies is available in the Annual Report.

14. LIC Golden Jubilee Foundation (LIC GJF):

LIC Golden Jubilee Foundation ("LIC GJF" or "Foundation"), as the name suggests, was established in 2006 to commemorate LICs Golden Jubilee. The Foundation serves as the key vehicle through which LIC undertakes its community development initiatives and is registered with the Charity Commissioner under Bombay Public Trust Act 1950.

The objectives of the Foundation are Relief of Poverty and Distress, Advancement of Education, Medical Relief and Advancement of any other object of General Public Utility. LIC GJF primarily supports capital-intensive projects aimed at infrastructural development, such as construction of School classrooms, hostel buildings, hospital wards, medical equipment, ambulances, school buses, solar panels, as well as assistance during natural calamity etc..

The Foundation has consistently contributed towards critical healthcare needs, including treatment of children affected with cancer, bone marrow transplant, pediatric heart surgeries, and cochlear implant surgeries for economically disadvantaged patients. During 2025-26, among various initiatives, financial assistance for procuring medical equipment was extended to reputed charitable and government hospitals across cities such as Mumbai, Bengaluru, Chennai, Kolkata, Hyderabad, Thiruvananthapuram, Bhubaneswar, Ghaziabad, Hubli, Nagpur, Asansol, Gorakhpur and in the state of Gujarat, largely for cancer treatment. As at March 31,2026, LIC GJF has disbursed over Rs.266 crores across 1045 projects nationwide.

The Foundation also administers the LIC Golden Jubilee Scholarship Scheme wherein Scholarships are awarded to meritorious students from economically weaker sections of the society, to provide them opportunities for higher education. During 2025-26, scholarship amounting to Rs.24.65 crore were disbursed to 23,106 students. Since inception, 41,776 students have benefited from the scheme, with total scholarship disbursements reaching Rs.105.27 Crore. Overall, the Foundations total disbursement towards charitable activities stands at approximately Rs.375 crore as on March 31, 2026. Through its sustained efforts and commitment, LIC GJF continues to expand its reach to make a meaningful impact on communities across the Country.

OTHER STATUTORY DISCLOSURES

15. Board of Directors and Key Managerial Personnel/Key Management Persons ("KMP"):

As on the date of this report, the Corporations Board comprises of Eight (8) Directors viz., One (1) Chief Executive Officer & Managing Director; One (1) Government Nominee Director; Three (3) Managing Directors; Three (3) Independent Directors.

The composition of the Board reflects a balanced mix of executive and non-executive directors, in line with the LIC Act, 1956 read with rules and regulations made thereunder, the Listing Regulations and IRDAI (Corporate Governance for Insurers) Regulations, 2024 (to the extent applicable), except the following:

> Upon completion of the term of Smt. Anjuly Chib Duggal, Independent Director on January 28, 2026, the Corporation does not satisfy the criteria laid down under Regulation 17 (1)(a) of the SEBI Listing Regulations which stipulates that Board of Directors of the top 1000 listed entities shall have at least one Independent woman Director.

> Upon completion of second term of two independent directors on April 28, 2026, the Corporation does not satisfy the criteria laid down under Regulation 17(1)(b) of the SEBI Listing Regulations which stipulates that if the Corporation does not have a regular non-executive Chairperson, half of the Board shall comprise of independent directors.

The Corporation vide its letters dated January 29, 2026 and April 29, 2026, had sought exemption from Securities and Exchange Board of India ("SEBI") from strict enforcement of SEBI Listing Regulations including any provision of Act(s), Rule(s), regulation(s) under which the listed entity is established or is governed by under Regulation 102 of SEBI Listing Regulations.

SEBI vide its letters dated February 13, 2026 and May 01,2026, had granted exemptions to the Corporation from strict enforcement of proviso of Regulation 17(1)(a) and Regulation 17(1)(b) of the SEBI Listing Regulations for a period of six months w.e.f., January 29, 2026 and April 29, 2026 respectively. Your Corporation is taking necessary steps to comply with the provisions of Regulation 17(1)(a) and 17(1)(b) of the SEBI Listing Regulations at the earliest, in both letter and spirit.

The Policy for Directors Qualification, Nomination, Appointment, Remuneration, Evaluation and Board Diversity (Directors Policy) which outlines the appointment criteria, roles, responsibilities, and evaluation mechanism of the Board is hosted on the website of the Corporation. A link to this policy is provided in Annexure ‘I at Page no. 235 of this Annual Report.

A) Changes in Board Composition:

> Appointment of Directors:

(i) Shri Ramakrishnan Chander (DIN: 11331783): The Government of India, vide their notification dated December 01, 2025, has appointed Shri Ramakrishnan Chander as Managing Director of the Corporation with effect from the date of assumption of charge of office and upto the date of his superannuation (i.e., September 30, 2027) or until further orders, whichever is earlier. Shri Ramakrishnan Chander took charge as Managing Director of the Corporation on December 01,2025.

The members of the Corporation have approved the appointment of Shri Ramakrishnan Chander through postal ballot on May 17, 2026.

(ii) Ms. Shalini Pandit (DIN 07780142): The Government of India, vide their notification dated December 03,

2025, has nominated Ms. Shalini Pandit as Government Nominee Director of the Corporation with immediate effect and until further orders, in place of Dr. Parshant Kumar Goyal.

The members of the Corporation have approved the appointment of Ms. Shalini Pandit through postal ballot notice of the Corporation on May 17, 2026.

(iii) Shri Mahalingam G (DIN: 09660723): Based on the recommendation of the Nomination and Remuneration Committee, the Board of Director of the Corporation in its meeting held on January 28, 2026, has reappointed Shri Mahalingam G as Independent Director for one further term of 6 (Six) months commencing from January 29, 2026 up to July 28, 2026.

The members of the Corporation have approved the re-appointment of Shri Mahalingam G through postal ballot on May 17, 2026.

(iv) Dr. V.S. Parthasarthy (DIN: 00125299): Based on the recommendation of the Nomination and Remuneration Committee, the Board of Director of the Corporation in its meeting held on January 28, 2026, has re-appointed Dr. V.S. Parthasarthy as Independent Director for one further term of 6 (Six) months commencing from January 29, 2026 up to July 28, 2026.

The members of the Corporation have approved the re-appointment of Dr. V.S. Parthasarthy through postal ballot on May 17, 2026.

(v) Shri Sanjay Lohiya (DIN: 07151125): The Government of India, vide their notification dated May 13, 2026, has nominated Shri Sanjay Lohiya as Government Nominee Director of the Corporation with immediate effect and until further orders, in place of Ms. Shalini Pandit. The Board of the Corporation took note of the same.

The necessary resolution for appointment of Shri Sanjay Lohiya as Government Nominee Director of the Corporation along with his brief profile has been included in the notice of the 5^th Annual General Meeting, for formal approval of the members.

> Cessation of Directors:

Government Nominee Director

(i) Dr. Parshant Kumar Goyal (DIN: 08652921): The Government of India, vide their notification dated

December 03, 2025, has nominated Ms. Shalini Pandit as Government Nominee Director of the Corporation in place of Dr. Parshant Kumar Goyal with immediate effect.

(ii) Ms. Shalini Pandit (DIN 07780142): The Government of India, vide their notification dated May 13,

2026, has nominated Shri Sanjay Lohiya as Government Nominee Director of the Corporation in place of

Ms. Shalini Pandit with immediate effect.

The Board acknowledges the valuable contributions made by Dr. Parshant Kumar Goyal & Ms. Shalini Pandit, during their tenure and places its deep appreciation for their guidance, support with their expertise and perspective.

Whole Time Director

(i) Shri Sat Pal Bhanoo (DIN: 10482731): Shri Sat Pal Bhanoo ceased to hold office as Managing Director of the Corporation, with effect from December 31, 2025, upon his superannuation, in terms of Government of Indias Notification dated July 19, 2023.

The Board acknowledges the valuable contributions made by Shri Sat Pal Bhanoo, during his tenure and places its deep appreciation for his leadership, vision, diligence and commitment to the Corporation.

Independent Director

(i) Smt. Anjuly Chib Duggal (DIN: 05264033): Smt. Anjuly Chib Duggal ceased to hold the position of Independent Director of the Corporation upon completion of her term on January 28, 2026.

(ii) Shri Raj Kamal (DIN: 07653591): Shri Raj Kamal ceased to hold the position of Independent Director of the Corporation upon completion of his term on January 28, 2026.

(iii) Shri Muthu Raju Paravasa Raju Vijay Kumar (DIN: 05170323): Shri Muthu Raju Paravasa Raju Vijay Kumar ceased to hold the position of Independent Director of the Corporation upon completion of his term on January 28, 2026.

(iv) Shri Vinod Kumar Verma (DIN: 09309031): Shri Vinod Kumar Verma ceased to hold the position of Independent Director of the Corporation upon completion of his term on April 28, 2026.

(v) Dr. Ranjan Sharma (DIN: 09573799): Dr. Ranjan Sharma ceased to hold the position of Independent Director of the Corporation upon completion of his term on April 28, 2026.

The Board acknowledges the valuable contributions made by Smt. Anjuly Chib Duggal, Shri Muthu Raju Paravasa Raju Vijay Kumar, Shri Raj Kamal, Dr. Ranjan Sharma and Shri Vinod Kumar Verma during their tenure and places its appreciation for their insights and commitments which were critical for the Corporation and for the quality of work reflecting the collective effort put in. The Board wishes them continued success in all their endeavours.

Pursuant to the SEBI Listing Regulation, the Certificate from M/s S.N. Ananthasubramanian & Co., Company Secretaries (Firms Registration No. P1991MH040400), confirms that none of the Directors of the Corporation are debarred or disqualified from being appointed or continuing as Director on the Board by the Securities and Exchange Board of India ("SEBI"), Ministry of Corporate Affairs ("MCA") or any such other Statutory Authority. The Certificate is attached as Annexure-F of the Corporate Governance Report.

B) Independent Directors:

Your Corporation has received declarations from all the Independent Directors confirming that they meet the ‘Criteria of Independence as laid down under Section 4(3) of the LIC Act, 1956 read with the rules and regulations made thereunder.

The Board is of the opinion that all the Independent Directors fulfill the conditions relating to their status as Independent Director as specified under Section 4(3) of the LIC Act, 1956 read with the rules and regulations made thereunder and applicable provisions of the SEBI Listing Regulations and are independent of the management.

The composition of Board during FY 2025-26, is given in the Corporate Governance Report which is placed separately and forms part of the Annual Report.

C) Key Managerial Personnel/Key Management Persons ("KMP") and changes, if any

Pursuant to the provisions of IRDAI (Corporate Governance for Insurers) Regulations, 2024 read with circular issued thereunder and Listing Regulations, the following senior management personnel of the Corporation were holding positions of KMPs as on March 31,2026:

S. No.	Name of KMP	Designation
1	Shri R Doraiswamy	Chief Executive Officer & Managing Director
2	Shri Dinesh Pant	Managing Director
3	Shri Ratnakar Patnaik	Managing Director
4	Shri Ramakrishnan Chander	Managing Director
5	Shri Sunil Agrawal	Chief Financial Officer*
6	Shri Krishna Kumar Sukumaran Nair	Executive Director (Corp.Gov./GJF/Reg.Comp.) & Chief Compliance Officer
7	Shri Ajay Kumar Srivastava	Appointed Actuary & Executive Director (Actuarial)
8	Shri Shatmanyu Shrivastava	Executive Director (ERM) & Chief Risk Officer
9	Shri Arindam Das Gupta	Executive Director (Investment Front Office) & Chief Investment Officer
10	Shri Anshul Kumar Singh	Company Secretary & Compliance Officer

*On June 24, 2026, Chief Financial Officer has tendered his resignation and will cease to be KMP w.e.f. July 14, 2026.

The Corporation, has approved the following changes in Key Managerial Personnel positions of the Corporation on the recommendation of Nomination & Remuneration Committee from the last Board report to this Board report:

S. No.	Name of KMP	Designation	Reasons for changes
1	Shri Ramakrishnan Chander	Managing Director	Appointed as Managing Director w.e.f. December 01, 2025.
			Ceased to hold position of Executive Director (Investment Front Office) & Chief Investment Officer (KMP) upon his elevation as Managing Director w.e.f. December 01, 2025.
2	Shri Krishna Kumar Sukumaran Nair	Executive Director (Corp. Gov./GJF/Reg.Comp.) & Chief Compliance Officer	Ceased to hold position of Executive Director (Corp. Gov./GJF/Reg.Comp.) & Chief Compliance Officer upon his superannuation on May 31,2026
3	Shri Arindam Das Gupta	Executive Director (Investment Front Office) & Chief Investment Officer	Appointed as Chief Investment Officer w.e.f. December 05, 2025.
4	Shri Jayasimhan Madabhushi Matam Tirumala	Executive Director (Board & Secretarial/Regulatory Compliance) & Chief Compliance Officer	Appointed as Chief Compliance Officer w.e.f. June 24, 2026.

Performance Evaluation of the Board:

Pursuant to the provisions of the LIC Act, 1956, read with the rules and regulations made thereunder, the SEBI Listing Regulations 2015, and the IRDAI (Corporate Governance for Insurers) Regulations, 2024 along with the applicable circulars issued thereunder, the Board conducted its annual performance evaluation, covering the Board as a whole, its Committees, individual Directors, and the Chairperson of the Board.

Independent Directors reviewed the performance of non-Independent Directors, the overall functioning of the Board, and the effectiveness of the Chairperson of the Board. They also assessed the quality, quantity, and timeliness of information shared between the Corporations Management and the Board.

The performance evaluation process was conducted through a dedicated iOS-based application developed to administer structured questionnaires for assessing the effectiveness of the Board, its Committees, individual Directors, and the Chairperson of the Board. These questionnaires were designed in alignment with the broad evaluation parameters outlined in the guidance notes issued by SEBI and the Institute of Company Secretaries of India (ICSI).

The evaluation of the Board encompassed key areas such as the fulfilment of its roles and responsibilities, strategic oversight, quality of decision-making, and adherence to governance standards. Individual Directors were assessed on their level of engagement in meetings, quality of contributions, ability to provide strategic guidance, and commitment to upholding the Corporations values and governance framework. The evaluation of Committees focused on their composition, clarity of roles, independence, and overall effectiveness in supporting the functioning of Board. The evaluation of Chairperson of the Board, covered the general criteria applicable to all Directors, along with specific aspects such as leadership effectiveness, facilitation of constructive Board discussions, and the timely resolution of issues raised by the Directors.

‘Fit and Proper criteria:

Pursuant to the provisions of IRDAI (Corporate Governance for Insurers) Regulations, 2024, read with circular issued thereunder, the Directors of insurer are required to meet the ‘Fit and Proper criteria prescribed by IRDAI. Accordingly, all Directors of the Corporation have confirmed their compliance with the ‘fit and proper criteria/norms as stipulated in the said regulations issued by the IRDAI.

Directors & Officers Liability Insurance:

Pursuant to Regulation 25(10) of the Listing Regulations, the Corporation has taken Directors & Officers liability Insurance for all its Directors and Members of the Senior Management Team for such quantum and risks as determined by the Board, from time to time.

Succession Planning:

In terms of the Board approved policy on succession planning, the Nomination & Remuneration Committee of the Board oversees matters relating to succession planning of KMPs, Senior Management Personnel and other key executives of the Corporation. The NRC also recommends the appointment of Independent Directors to fill vacancies on the Board.

Meetings of the Board and its Committees, attendance and constitution of various Committees:

The details of meetings of the Board and its Committees held during the year, including the attendance of Directors and the composition of various Committees, are set out in the Corporate Governance Report. The said report is presented separately and forms an integral part of this Annual Report.

Remuneration Policy:

Pursuant to the provisions of Section 19B of LIC Act, 1956, the Board has approved the Directors policy with includes remuneration policy as recommended by the NRC of the Board. The Policy is available on the Corporations website, and the link to the policy is provided in Annexure ‘l at Page no. 235 of this Annual Report.

Further, details relating to the remuneration of the Directors, including Whole-time Directors, are disclosed in the Corporate Governance report, which is presented separately and forms an integral part of this Annual report.

Secretarial Standards:

Your Corporation is obliged to comply with Secretarial Standards issued by the Institute of Company Secretaries of India (ICSI) in terms of provisions contained under Life Insurance Corporation General Rules, 1956.

16. Corporate Governance:

Your Corporation regards its stakeholders as integral partners in its journey towards sustained success and remains firmly committed to creating long-term value to them. Recognizing robust corporate governance as cornerstone of stakeholder trust, the Corporation consistently upholds its responsibilities across all levels of the organization. It ensures that its business operations are firmly aligned with the highest standards of governance, transparency and ethical conduct.

In order to strengthen accountability and foster continuous stakeholders engagement, the Corporation follows well-established corporate governance practices supported by standard operating procedures and function-specific manuals that guide day-today operations and ensure uniformity and consistency across the organisation.

Governance is further reinforced through various Board level committees, which provide strategic oversight, safeguard shareholder interests, enhance brand equity, and contribute to a constructive and performance oriented organizational environment.

Through these concerted efforts, the Corporation endeavours to uphold stakeholder trust, support sustainable growth, and maintain its position as a responsible, resilient and forward-looking organisation.

Corporate Governance Report:

In compliance with the Listing Regulations, a Report on the Corporate Governance framework of the Corporation, along with Certificate from Auditors confirming compliance with the conditions of Corporate Governance, is annexed as Annexure E to Corporate Governance Report, which forms part of the Annual Report.

17. Related Party Transactions:

During the year, your Corporation has entered into transactions with related parties in the ordinary course of business. The details of such related party transactions were placed before the Audit Committee from time to time for its approval. Suitable disclosures, as required under applicable Accounting Standards, have been made in the notes to the Financial Statements.

Pursuant to the Listing Regulations, the members of the Corporation, at the 4^th Annual General Meeting, approved the material related party transactions proposed to be entered into by the Corporation during the FY 2025-26 and upto the date of 5^th AGM. The Board of Directors has formulated a policy on materiality of Related Party Transactions and on dealing with Related Party Transactions, in accordance with the provisions of the LIC Act, 1956 and the Listing Regulations. The updated Policy, as approved by the Board from time to time, is available on the Corporations website, and the link of policy is provided in Annexure ‘l on Page no. 235 of this Annual Report.

The disclosure on Related Party Transactions, prepared in accordance with applicable accounting standards and Regulation 23(9) of the Listing Regulations for the half year ended September 30, 2025 and March 31, 2026, has been submitted to the Stock Exchanges and are also published on the Corporations website.

18. Indian Accounting Standards (Ind AS) Implementation:

The Corporation has prepared and submitted Ind AS compliant Proforma Financial Statements (PFS) for FY 2023-24 and FY 2024-25 to Insurance Regulatory and Development Authority of India ("IRDAI").

IRDAI notified Insurance Regulatory and Development Authority of India (Actuarial, Finance and Investment Functions of Insurers), (Amendment) Regulations, 2026 dated 30^th March, 2026, making implementation of Ind AS effective from April 01,2026. In accordance with the regulatory framework, the Corporation had applied for one-year forbearance for Ind AS implementation to IRDAI which has been granted by the Regulator.

In line with regulatory requirements, the Corporation is making steady progress towards implementation of Ind AS.

19. Particulars of Investment in Terms of Section 27A of Insurance Act, 1938:

Pursuant to the provisions of Section 27A of the Insurance Act, 1938, the Corporations investments as at March 31, 2026, are mentioned at Page no. 361 of the Annual Report and the investments made in the infrastructure and social sector for the financial year 2025-26 are mentioned at Page no. 362 of the Annual Report.

20. Consolidated Financial Statements:

In accordance with Section 24B of the LIC Act, 1956 read with rules and regulations made there under and SEBI Listing Regulations, 2015, the Corporation has prepared its Consolidated Financial Statements (CFS), which include the financials of its subsidiaries and associate companies. The CFS have been prepared in compliance with the provisions of Insurance Regulatory and Development Authority of India (Actuarial, Finance and Investment Functions of Insurers) Regulations, 2024, and the relevant circulars issued thereafter from time to time. The CFS also adhere to the applicable Accounting Standards, i.e. AS 21: Consolidated Financial Statements and AS23: Accounting for Investments in Associates in CFS issued by Institute of Chartered Accountants of India (ICAI). The CFS forms an integral part of this Annual report.

21. Management Report:

Pursuant to the provisions of Schedule II - Financial Functions of the Insurance Regulatory and Development Authority of India (Actuarial, Finance and Investment Functions of Insurers) Regulations, 2024, the Management Report is placed separately and forms an integral part of this Annual Report.

22. Statutory Auditors:

M/s. V. Sankar Aiyar & Co., Chartered Accountants (Firm Registration Number 109208W) and M/s. Mukund M Chitale & Co., Chartered Accountants (Firm Registration Number 106655W) are the Corporations Auditors as per the applicable provisions of the LIC Act 1956.

The Members at the 4^th AGM of the Corporation held on August 26, 2025 inter-alia had appointed M/s. Mukund M Chitale & Co. Chartered Accountants, (Firm Registration Number 106655W) as one of the Corporations Auditors for a period of five years till the conclusion of the 9^th AGM of the Corporation to be held in the calender year 2030, in terms of applicable provisions of the LIC Act 1956.

23. Statutory Auditors Report:

The Statutory Auditors Report (including annexure thereof) submitted to the Members does not contain any qualification, reservation, adverse remark or disclaimer, hence do not call for any further comments u/s 24C(1)(f) of the LIC Act, 1956. There were no reportable frauds identified by the Statutory Auditors during the FY2025-26.

24. Secretarial Auditors Report:

Pursuant to Regulation 24A of the Listing Regulations, the members of the Corporation at the 4^th AGM had appointed M/s S.N. Ananthasubramanian & Co., Company Secretaries, as the Secretarial Auditor of the Corporation for a term of five consecutive years, commenced from conclusion of 4^th AGM and continuing till the conclusion of the 9^th AGM of the Corporation to be held in the calendar year 2030. The Auditor has not made any qualification, reservation or adverse remark or disclaimer in the report for FY 2025-26. The detailed report on Secretarial Audit of the Corporation for FY 2025-26 is annexed as Annexure ‘D to Corporate Governance Report and forms an integral part of this Annual Report.

25. Certificate from Chief Compliance Officer in terms of IRDAI (Corporate Governance for Insurers) Regulations, 2024:

A Compliance Certificate, for complying with IRDAI (Corporate Governance for Insurers) Regulations, 2024, submitted by the Chief Compliance Officer & Executive Director (Board & Secretarial/ Regulatory Compliance) under the IRDAI (Corporate Governance for Insurers) Regulations 2024, is annexed and forms part of the Corporate Governance Report as Annexure ‘C to this report.

26. Management Discussion and Analysis Report:

Management Discussion and Analysis (MD&A) Report for the year under review as stipulated under Regulation 34 of the Listing Regulation, is presented in a separate section, which forms an integral part of this Annual Report.

27. Business Responsibility & Sustainability Report:

Regulation 34(2)(f) of the Listing Regulation mandates the inclusion of Business Responsibility & Sustainability Report (BRSR) as part of the Annual Report for Top 1000 listed entities based on market capitalization (calculated as on 31^st December of every financial year) at BSE and NSE.

Accordingly, BRSR along with the report of Independent Assurance provider, M/s. Rama K Gupta & Co., Chartered Accountant, is placed separately and forms an integral part of this Annual Report.

28. Material Events, Changes and Commitments Affecting Financial Position of the Corporation

There have been no material events, changes and commitments, affecting the financial position of the Corporation, which have occurred from the end of the financial year to which the Balance Sheet relates and the date of this report.

However, during the financial year 2025-26 the Significant Accounting Policy for Standalone Financial Statements of the Corporation has been amended inter-alia, includes material revision regarding Recognition of Investment Income through amortization of premium or discount over the remaining period of holding period until Maturity.

29. Significant and Material Orders Passed by Regulators or Courts or Tribunals Impacting the Going Concern Status and Operations of the Corporation:

During FY 2025-26, no significant or material orders were passed by any Court or Tribunal that would impact the going concern status or operations of the Corporation.

A civil litigation matter, along with connected issues, is currently sub judice before the Honble Supreme Court of India in Writ Petition (Civil) No. 366 of 2022. Although the matter is non-quantifiable in financial terms, it has been deemed material and was accordingly disclosed in the Red Herring Prospectus dated April 2022. As on the date of this Report, the matter remains pending and is yet to be heard by the Honble Supreme Court of India.

30. IRDAI License:

The Insurance Regulatory and Development Authority of India (IRDAI) has renewed the annual registration of the Corporation to continue the Life Insurance Business for the FY 2026-27.

31. Directors Responsibility Statement:

In terms of Section 24C (2) of LIC Act, 1956 and other applicable provisions, your Directors confirm that;

a. in the preparation of the annual accounts for the year ended March 31,2026, the requirements mentioned under Section 24B of the LIC Act, 1956 and applicable Accounting Standards have been followed along with proper explanation relating to material departures;

b. they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Corporation as on March 31,2026 and of the profit of the Corporation for the year ended on that date;

c. they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the LIC Act, 1956 for safeguarding the assets of the Corporation and for preventing and detecting fraud and other irregularities;

d. they have prepared the accounts for the current financial year ended March 31,2026 on a going concern basis;

e. the vigilance administration referred under Section 8(1)(h) of the Central Vigilance Commission Act, 2003 is in operation in the Corporation under the superintendence of the Central Vigilance Commission and in addition they have laid down internal financial controls to be followed by the Corporation and that such internal financial controls are adequate and were operating effectively; and

f. they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

32. Vigil Mechanism/ Whistle Blower Policy:

The Corporation is committed to conduct its affairs in a fair, transparent, ethical manner, guided by the highest standards of professionalism and integrity. The Corporation has developed a strong culture that encourages stakeholders to raise concerns about unethical and unfair practices, misconduct, or violation of legal and regulatory provisions without fear of reprisal, discrimination, or victimization.

• To facilitate vigilance related reporting, Corporation has introduced an online complaint portal named "Satarkata Shikayat Dwar", accessible under the Customer Services tab of Corporations website at www.licindia.in. All vigilance related complaints can be registered and tracked through the portal.

• LIC has a well-established vigil mechanism for Directors and employees for adequate safeguard against victimization of Directors and employees or any other person who report genuine concerns. It has a policy for prevention, detection and investigation of frauds and protection of whistle-blowers (The Whistle-blower policy). It encourages employees and various stakeholders to bring to its notice any issue involving compromise/violation of ethical norms, legal or regulatory provisions, actual or suspected fraud etc without any fear of reprisal, discrimination, harassment or victimization of any kind. All whistle-blower complaints and concerns are reviewed on quarterly basis by the Audit Committee of the Board, which also oversees the functioning and effectiveness of the mechanism.

• To enhance efficiency and transparency in disciplinary processes, LIC has developed and implemented the UDIT Module (Upgraded Disciplinary Workflow through Integration of Technology). This digital initiative aims to reduce turnaround time in disposal of disciplinary and vigilance cases. The Corporation is also in the process of integrating the UDIT module with HRMS (Human Resource Management System) to further improve operational efficiency.

• During the review period, no person was denied access to the Audit Committee.

The Whistle-Blower Policy is hosted on the Corporations website. The link to the policy is provided in Annexure ‘l at Page no. 235 of this Annual Report.

33. Board Policies:

The details of the policies approved and adopted by the Board of Directors of the Corporation as mandated under the LIC Act, 1956 and the SEBI Listing Regulations are annexed as Annexure ‘l to this report.

34. Investor Relations:

The Corporation places the highest value on its relationships with customers and stakeholders. Committed to transparency, it strives to ensure that all stakeholders have access to complete and timely information to accurately assess the Corporations performance and future potential. To support this, the Corporation regularly disseminates updates on its operations, financials and key initiatives. The Corporations official website, (www.licindia.in) serves as a comprehensive repository of information, offering stakeholders convenient access to a wide range of resources. It provides detailed insights into the Corporations strategy, operational and financial performance, along with the latest press releases. Financial results are published on quarterly basis and are made available on the website for both the current and previous years.

Following each results announcement, the Investor Relations team conducts earnings calls, with investor presentations, transcripts, and recordings subsequently uploaded on the website for wider access. Additionally, Senior Management regularly participates in equity conferences organized by leading securities firms, thereby reinforcing the Corporations commitment to continuous and meaningful engagement with the investor community.

35. Acknowledgements and Appreciations:

The Directors express their sincere thanks to the Honble Parliamentary Committees which visited its offices, the Honble Union Finance Minister, Honble Union Minister of State for Finance (Expenditure, Banking and Insurance), Department of Financial Services, Ministry of Finance, Government of India (GOI), for their valuable support, guidance and co-operation on various issues.

The Directors are deeply grateful to the Insurance Regulatory and Development Authority of India (IRDAI), Securities and Exchange Board of India (SEBI), Reserve Bank of India (RBI) and other government and regulatory authorities for their continued co-operation, support and guidance.

The Directors also take this opportunity to place on record their sincere appreciation to the valued Policyholders and Shareholders for their continued trust and patronage.

Further, the Directors express their gratitude for the advice, guidance and support received from time to time, from the Auditors, and Statutory Authorities.

Lastly, the Directors place on record their deep appreciation for the contribution of all Employees, Agents, Corporate Agents and Brokers, Bancassurance Partners, Re-insurers, Bankers and the Registrar and Share Transfer Agent. Their dedication, professionalism, and commitment have been instrumental in enabling the Corporation to maintain its leadership position in the insurance industry.

For and on behalf of the Board of Directors
(R Doraiswamy)	(Dinesh Pant)	(Dr. V.S. Parthasarthy)
Chief Executive Officer & Managing Director	Managing Director	Independent Director
(DIN: 10358884)	(DIN:11134993)	(DIN: 00125299)
Date: June 24, 2026
Place: Mumbai