Life Insurance Corporation of India (LIC) share price dropped to a 52-week low of ₹806.85 during intraday trading on Tuesday. Although the stock recovered slightly, trading 0.74% higher at ₹814.90 by 12:37 PM, it has seen a 34% decline since its peak of ₹1,221.50 on August 1, 2024. Over the past 6 months, LIC’s shares have fallen 24%, underperforming the broader market, where the BSE Sensex declined by 5%.
LIC’s premium collections for December 2024 fell sharply, dropping 41.15% year-on-year (YoY) to ₹13,523.87 crore. This was mainly due to a notable drop in its group single premium, which halved to ₹8,191.29 crore. Additionally, individual non-single premium collections fell to ₹2,628.74 crore from ₹3,111.33 crore. In contrast, private insurers reported a 7% growth in new business premiums, reaching ₹16,694.85 crore during the same period.
The implementation of revised surrender value norms has significantly affected LIC. The company raised the minimum ticket size for many products, which has led to a decrease in policy counts and negatively impacted Retail Annualised Premium Equivalent (APE) growth. Pre-sales activity in September 2024, driven by a push to sell older products, further distorted growth figures for the December quarter (Q3FY25).
Despite challenges, LIC is leveraging its market leadership by focusing on profitable segments such as Protection, Non-PAR (non-participating), and Savings Annuity products. Efforts are underway to bridge the gap with private players through new product launches, enhanced distribution channels, and digital initiatives.
LIC has revamped its product portfolio, realigning offerings to meet regulatory expectations, enhance investor profitability, and maintain intermediary benefits. Out of 54 products, 32 have been relaunched with revised premium rates and updated designs. The changes aim to improve persistency while ensuring profitability margins are protected under the new surrender value regulations.
Life Insurance Corporation of India is a public sector life insurance company based in Mumbai. It is the largest insurance provider in India and also the biggest institutional investor in the country, managing assets worth ₹52.52 trillion as of March 2024.
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Published on: Jan 14, 2025, 1:51 PM IST
Kusum Kumari
Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.
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