Image Source : Indian Masterminds
Life Insurance Corporation of India (LIC) has recently handed over a dividend cheque of Rs 7,324.34 crore to the Union Finance Minister Nirmala Sitharaman for the financial year 2024-25. This dividend payout, approved at LIC’s Annual General Meeting (AGM) held on August 26, 2025, underscores the company’s continued robust financial position and its significant contribution to the government’s revenue.
Key Highlights Of LIC’s Dividend Payment
The dividend cheque amounting to over Rs 7,324 crore represents the government’s share as a major shareholder in LIC.
The cheque was presented in a formal ceremony by LIC CEO and Managing Director R Doraiswamy in the presence of senior officials from the Ministry of Finance.
LIC’s asset base as of March 31, 2025, stood at an impressive Rs 56.23 lakh crore, reaffirming its status as India’s largest life insurer.
The company continues to dominate the Indian life insurance market, holding a 63.51% market share measured by first-year premium income.
LIC reported a consolidated net profit of Rs 10,985 crore in Q1 FY26, showing a year-on-year increase of over 4%.
Details From The Annual General Meeting
The dividend amount was approved by shareholders during the AGM on August 26, 2025.
The meeting also saw approval for a final dividend of Rs 12 per equity share.
Appointment of new auditors and directors, including confirmation of R Doraiswamy as CEO and MD, was part of the resolutions.
The company emphasized transparent governance, facilitating e-voting and appointing independent scrutinizers for the electoral process.
Financial Performance Snapshot
The company’s net premium income rose by 4.71% year-on-year to Rs 1.2 lakh crore in Q1 FY26.
LIC’s non-par Annualised Premium Equivalent (APE) within individual business increased significantly to 30.34%.
Group business APE also grew by 16.1% year-on-year to approximately Rs 5,590 crore.
Overall value of new business (VNB) saw a 20.7% increase year-on-year to Rs 1,944 crore.
Assets under management increased 6.4% year-on-year to Rs 57.05 lakh crore during the quarter.
Significance For The Government And Market
LIC is a key contributor to the government’s non-tax revenues through dividend payouts and other financial dealings.
The hefty dividend amount reflects LIC’s profitability and prudent management despite challenges in the insurance sector.
The payment also highlights the role of state-owned enterprises in supporting public finances.
Investors consider LIC a stable and influential player in India’s financial markets due to its scale and market presence.
Leadership And Corporate Governance
CEO R Doraiswamy underscored LIC’s commitment to long-term growth, customer centricity, and innovation.
The presence of senior Ministry of Finance officials during the dividend handover highlighted coordination between LIC and government bodies.
LIC’s transparent shareholder engagement processes strengthen investor confidence and governance standards.
The company is focused on expanding product offerings and digital capabilities for better customer reach.
Looking Ahead
LIC celebrates 69 years since incorporation, marking a legacy of financial security and national importance.
With a strong capital base and steady profit growth, LIC is well-positioned to face upcoming sectoral changes and competition.
Its financial stability promises continued support to the Government of India and millions of policyholders across the country.
LIC is expected to sustain its leadership position with innovative insurance products and enhanced risk management.
In Conclusion
The Rs 7,324 crore dividend payout from LIC to the finance ministry for FY25 is a testament to the corporation’s resilient business model and operational success. As India’s premier life insurance company, LIC not only provides invaluable social security but also plays a critical financial role contributing to the nation’s exchequer. With strong growth numbers and sound governance, LIC continues to be a vital pillar of India’s financial ecosystem.
Source: Economic Times, Business Standard, NDTV Profit, CNBC TV18, Rediff Money
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