Life Insurance Corporation of India (LIC) has recorded a growth of 16.67% in total premium collected for fiscal year 2022-23, reaching a total of ₹2.32 trillion from ₹1.99 trillion in the previous fiscal year. This makes LIC the largest insurance company in India, with a market share of over 62%. The private insurance sector has also collected a considerable amount of premium in March due to the last-minute customer rush to benefit ahead of the withdrawal of tax exemptions for non-linked policies on April 1st.
LIC’s premium growth for fiscal year 2023 is the second highest among its listed peers, with HDFC Life leading with 18.83%, followed by SBI Life at 16.22% and ICICI Prudential Life Insurance Company at 12.55%. The company has shown positive growth in individual non-single premium and group single premium segments, with the latter growing by 21.76% to ₹1,67,235 crore from ₹1,37,350.36 crore in the previous fiscal year.
According to a report published by Kotak Institutional Equities, listed insurers are expected to deliver a growth of 15-60% in their value of new business for the fourth quarter of fiscal year 2023. This is due to the improvement in term business, nonpar business, and better operating leverage. Broking firm Motilal Oswal has also initiated a “buy” call on LIC’s share with a target price of ₹830 per share post their Q3 FY23 results update. This is based on the company’s gradual diversification of product or channel mix and its ability to maintain its leadership position.
LIC’s contribution to the Indian economy cannot be understated. The company has invested in various sectors such as infrastructure, housing, and agriculture, which has helped to fuel economic growth. With a vast network of agents and branches across India, LIC is accessible to customers in both urban and rural areas, making it an important player in the Indian insurance sector.