LIC shares dive 3% after premiums struggle in November; key metrics here

Shares of state run life insurer LIC dipped 3.59 per cent at Rs 951 a piece on the BSE in Tuesday's intraday trade after the life insurers premium earnings dropped in the month of November.

 

LIC's premiums for November fell 27 per cent on a year-on-year basis (Y-o-Y), though the company saw a 16 per cent increase in premiums for the first eight months of FY25. Both total and retail annual premium equivalent (APE) for November were down, declining 19 per cent and 12 per cent, respectively.

 

Meanwhile, the Indian life insurance sector experienced mixed performance in November, with overall premiums declining 4.5 per cent year-on-year (YoY). However, the eight-month period of FY25 showed a 16 per cent Y-o-Y growth in premiums across the industry.

 

Private life insurance companies delivered strong performance, with November premiums rising 31 per cent Y-o-Y. This growth contributed to a 15 per cent Y-o-Y increase in premiums for the first eight months of FY25. Top performers included ICICI Prudential Life, Max Life and HDFC Life. 

 

LIC share price history

On the equities side, LIC’s stock has been largely in line the market year to date as it has surged 11 per cent, while gaining 23 per cent in the last one year. In comparison BSE Sensex has risen 13 per cent year to date and 17 per cent in a year. 

 

The company has a total market capitalisation of Rs 6.07 trillion. At 10:07 AM; the shares of the company were trading 2.69 per cent higher at Rs 959.95 a piece. By comparison, the BSE’s Sensex was up 0.25 per cent at 81,712.94 level. 

 

LIC Q2FY25 results

On the financial front, LIC reported a 4 per cent year-on-year decline in its second-quarter standalone net profit, which stood at Rs 7,621 crore, down from Rs 7,925 crore. The decline was attributed to higher outgo due to benefits paid, changes in actuarial liability, and fund transfers to policyholders' accounts.

 

However, LIC posted a strong 12 per cent Y-o-Y growth in net premium income (net of reinsurance), which rose to Rs 1,19,901 crore, compared to Rs 1,07,397 crore in the same quarter last year.