LIC shares slide 4% as premium declined 27%; Here’s what brokerages have to say

Shares of Life Insurance Corporation fell 4% to an intra-day low of Rs 947.50 after the company’s premium contracted 27% on year.

The company’s retail annual premium equivalent (APE) has fallen to 12.4% year-on-year to Rs Rs 2,215.5 crore in November 2024, compared to Rs 2,528.4 crore in November 2023. While, the total APE dipped by 19.4% YoY to Rs 3,154 crore in November 2024, against Rs 3,915.3 crore in November 2023.

Elara Securities on LIC shares

Overall APE for November 2024 grew a mere 3% YoY in November 2024 vs 11% YoY in the previous month for the industry with LIC reporting a decline of 19% while private firms reported 18% YoY growth during the month. Within private firms, growth was driven by IPRU, MAX Life and small firms.

JM Financial Services on LIC shares

November 2024, saw private life insurers move towards a normal 15.3% year-on-year growth in individual annual premium equivalent, even as two top players, SBI Life and HDFC Life reported weak prints of 8.5% and 2.7% YoY, respectively. LIC expectedly reported another month of YoY contraction with individual APE down 12.4% YoY. Overall, the industry collected individual APE of Rs 8520 crore, of which private insurers contributed 74.0%. IPRU and Max Life continued to impress with 28.1%/24.8% YoY growth. IPRU, interestingly, reported 122.7% growth in group APE, which is likely due to some large deal wins.

LIC in Q2

A month back the life insurer reported a 4% on-year decline in its standalone net profit at Rs 7,621 crore for the second quarter of the current financial year, compared to Rs 7,925 crore in the year-ago quarter. Its net premium income for the reporting quarter grew by 11% year-on-year to Rs 1.19 lakh crore, against Rs 1.07 lakh crore in the same quarter last year. The company’s income from investments increased by 16% YoY to Rs 1.08 lakh crore in Q2 FY25, compared to Rs 93,942 crore in Q2 FY24.

LIC Vs Nifty 50

The stock of LIC has fallen 2.6% in the last five trading days. However, it has risen by 3.4% in the past one month. The stock of life insurer has erased 4.75% in the previous six months. It has given a return of more than 10% from year to date and 23% in the last one year.

To compare, the benchmark index, Nifty 50 has given no returns in the last five trading sessions. It has risen by 1.5% in the past one month and 5.4% in the last six months. The index has delivered a return of 12.7% from year to date and 16.7% in the previous one year.