LIC AAO (1B) Exam 2026-Study Notes

LIC FY26 Annual Results — Quick Revision Summary
AAO (1B) Exam Prep  |  Study4Insurance  |  FY 2025–26 (Results: May 21, 2026)
📚 Full LIC AAO (1B) Course — FY26 Edition Complete video lectures, topic-wise notes, mock tests & current affairs for the 2026 exam. study4insurance.com
Enroll Now →
📊 Top Financial Figures — FY26
The twenty numbers most likely to appear in the data-retrieval section of the exam.
MetricFY26 Figure
Profit After Tax (PAT)₹57,419 Crore (+19.25%)
Total Premium Income₹5,35,984 Crore (+9.80%)
First Year Premium (FYPI)₹41,935.30 Crore (+13.26%)
Renewal Premium₹2,76,135.59 Crore (+5.37%)
Single Premium₹2,18,677.67 Crore (+15.24%)
Annual Premium Equiv. (APE)₹66,961 Crore (+17.83%)
Indiv. Business APE₹43,335 Crore
Group Business APE₹23,626 Crore (35.28%)
Total Income₹9,74,797 Crore
Investment Income (Net)₹4,31,573 Crore
MetricFY26 Figure
AUM (All-time High)₹57,29,396 Crore (+5.08%)
Indian Embedded Value (IEV)₹7,89,185 Crore (+1.58%)
Value of New Business (VNB)₹14,179 Crore (+41.63%)
VNB Margin21.2% (+360 bps)
Solvency Ratio2.35 (up from 2.11)
Expense Ratio11.91% (down 51 bps)
Non-Par Share of Indiv. APE35.11% (up from 27.69%)
Death Claim Settlement Ratio99.44%
Total Maturity Claims Paid₹2,79,951 Crore
Policyholder Bonus Declared₹59,726 Crore
📈 FY25 vs FY26 — Year-on-Year at a Glance
Know the direction and the exact magnitude of each change.
ParameterFY25FY26Change
PAT₹48,151 Cr₹57,419 Cr+19.25%
Total Premium Income₹4,88,148 Cr₹5,35,984 Cr+9.80%
VNB₹10,011 Cr₹14,179 Cr+41.63%
VNB Margin17.6%21.2%+360 bps
AUM₹54,52,297 Cr₹57,29,396 Cr+5.08%
Solvency Ratio2.112.35+24 bps ↑
Expense Ratio12.42%11.91%−51 bps ↓
Non-Par APE Share27.69%35.11%+7.42 pp
GNPA Ratio5.47%4.34%Improved ↓
61st-Month Persistency63.12%59.31%Declined ↓
🏢 Network & Workforce
Exact counts — common in objective questions.
  • Individual Agents: 14,86,851
  • Employees: 91,606
  • Zonal Offices: 8
  • Divisional Offices: 113
  • Branch Offices (computerized): 2,048
  • Satellite Offices: 1,584
  • Mini Offices: 1,168
  • Internal Audit Centres: 13
  • Banks (Bancassurance): 95
  • Other Corp Agents: 88  |  Brokers: 301
🏛️ Governance & Legal
Section numbers matter — know which section does what.
  • Section 26 — Actuarial Valuations
  • Section 28 — Surplus Distribution:
      90% par surplus → Policyholders (from FY25)
      10% → Shareholders
  • Section 37 — Government Guarantee on policies
  • Surplus Distribution Policy: published every 5 years
  • PPGR&CMC meetings in FY26: 4
  • D-SII designation retained by IRDAI for FY26
  • Market Share (FYPI): 57.05%
  • Global brand rank: 3rd strongest insurance brand
  • Motto: “Yogakshemam Vahamyaham” — Your welfare is my responsibility
⭐ Key Events & Corporate Actions
Landmark firsts — these appear frequently as MCQ hooks.
  • Bima Sakhi Yojana: Launched December 9, 2024 | 1,48,888 Bima Sakhis appointed by March 2025
  • Guinness World Record: 5,88,107 policies sold in 24 hours — January 20, 2025
  • Bonus Share Issue: 1:1 — paid-up equity capital doubled to ₹12,650 Crore
  • Final Dividend: ₹10 per equity share for FY26
  • Bancassurance milestone: Crossed ₹5,000 Crore for the FIRST TIME (₹5,076 Crore | +45.19% YoY)
  • ANANDA platform: +56.08% YoY | 12.48% share of total individual policies
🧠 Memory Tricks — Lock These In Before the Exam
Rule of 57: Both PAT and AUM start with 57.  PAT = ₹57,419 Cr  |  AUM = ₹57,29,396 Cr
VNB 21-14: Margin = 21.2% → Absolute VNB = ₹14,179 Crore. The percentage leads; the crores follow.
SR-ER Inverse Swap: Solvency Ratio (SR) ↑ to 2.35  |  Expense Ratio (ER) ↓ to 11.91% — always opposite directions.
35-35 Target: Non-Par APE = 35.11%  ≈  Group APE share = 35.28% — two different things, nearly the same number.
✅ Exam Tips — Watch for These Traps
Common confusion points that cost marks.
360 bps ≠ Solvency Ratio change. 360 bps = VNB Margin expansion. 24 bps = Solvency Ratio improvement. 51 bps = Expense Ratio decline.
IEV only grew 1.58% despite strong operations. Why? Negative economic variance of ₹72,740 Crore (equity MTM: ₹53,698 Cr + debt MTM: ₹46,853 Cr).
61st-month persistency declined — from 63.12% to 59.31%. Counter-strategy: raise minimum sum assured to attract higher-ticket, loyal customers.
Non-Par APE at 35.11% directly caused VNB Margin to expand to 21.2% (+360 bps). These two facts are always tested together.
AI Study Assistant
Online • Typically replies instantly