LIC approves 1:1 bonus issue to boost liquidity
Life Insurance Corporation of India has approved a 1:1 bonus share issue, a move that will double its paid-up equity capital and improve stock liquidity.
The decision, cleared by the board on April 13, is subject to shareholder approval, with the record date to be announced. Post-issue, LIC’s paid-up capital will rise from Rs. 6,325 crore to Rs. 12,650 crore, while authorised capital remains at Rs. 25,000 crore.
The bonus issue is expected to enhance retail participation and support potential future stake sales by the government, especially as the stock trades below its IPO price of Rs. 949.
Despite the equity expansion, LIC’s financial strength remains unchanged, backed by reserves of Rs. 1.46 lakh crore and a profit of Rs. 33,998 crore for the nine months ended December 2025.
ICICI Prudential Life posts steady profit growth
ICICI Prudential Life Insurance Company Limited reported a 19% year-on-year rise in Q3 FY26 net profit to Rs. 390 crore, reflecting stable operational performance.
However, net premium income declined 3.7% to Rs. 11,809 crore, indicating pressure on topline growth. Gross premium income also fell marginally to Rs. 12,226 crore.
The insurer reported a Value of New Business (VNB) of Rs. 615 crore, while solvency ratio improved by 300 basis points to 214.8%, highlighting strong capital adequacy.
Operational metrics remained stable, with the expense ratio at 19.3% and 13th-month persistency at 81%.
The results reflect a balanced performance, with profitability and solvency strengthening despite moderation in premium growth.
Bajaj Life launches low-volatility ULIP index fund
Bajaj Allianz Life Insurance Company Limited has introduced the Nifty 500 Low Volatility 50 Index Fund under its ULIP offerings, targeting stable long-term returns.
The fund follows a passive, rules-based strategy, selecting 50 relatively stable stocks from the broader Nifty 500 universe. It maintains a strong large-cap bias of around 79%, with the remainder allocated to mid- and small-cap segments.
Benchmarking against the Nifty 500 Low Volatility 50 Index, the fund aims to reduce market volatility while capturing equity growth opportunities.
The New Fund Offer is open until April 30, with the insurer positioning it as a suitable option for investors seeking steady compounding in uncertain market conditions.
HDFC Life Q4 profit rises; HDFC Bank to infuse Rs. 1,000 crore
HDFC Life Insurance Company Limited reported a 4% year-on-year increase in Q4 FY26 net profit to Rs. 495.6 crore, impacted by regulatory changes including GST adjustments.
To strengthen capital position, HDFC Bank Limited will invest Rs. 1,000 crore through a preferential issue, raising its stake to 50.5%.
The infusion will improve the insurer’s solvency ratio to around 186% from 177%, providing additional buffer for growth, particularly in the protection segment.
The move also prepares the company for future regulatory shifts such as the risk-based capital framework, while enabling flexibility for raising subordinated debt if required.
Insurers likely to seek Ind AS forbearance amid system gaps
Most Indian insurers are expected to seek a one-year forbearance for transitioning to Indian Accounting Standards (Ind AS), citing delays in full system readiness.
The Insurance Regulatory and Development Authority of India has made Ind AS adoption effective from April 1, aligning India’s insurance accounting with global IFRS standards. However, insurers have so far relied on semi-manual or partially automated systems for proforma submissions over the past two years.
Industry experts indicate that full-scale automation, essential for Ind AS compliance, is still under development and may take additional time to implement. Insurers planning to seek relief must apply by April 30.
The transition marks a major structural shift in financial reporting, but operational readiness challenges could delay full adoption across the sector.
LIC shares surge on bonus issue expectations
Shares of Life Insurance Corporation of India rose 6.75% to Rs. 793.50 on the BSE following news that its board would consider a bonus share issue—potentially its first since listing.
The move is expected to benefit nearly 21 lakh retail investors, who collectively hold about 1.52% stake in the insurer. Market sentiment was further supported by strong financial performance, with LIC reporting a 17% year-on-year increase in Q3 net profit to Rs. 12,958 crore.
Premium income rose 17.5%, while assets under management expanded to Rs. 59.16 lakh crore. The company has also been exploring monetisation of its real estate portfolio through higher rental income and potential REIT structures.
Analysts remain positive, citing strong growth momentum and continued investor interest in the stock.
