Growth, lower valuations to drive gains in LIC stock in near term

The VNB margin expanded 80 basis points Y-o-Y to 17.6 per cent at end FY25. The VNB margin expansion is primarily on account of focus towards the profitable non-par products

Life Insurance Corporation of India’s (LIC) annualised premium equivalent (APE) growth remained weak in the fourth quarter of the financial year 2024-25 (Q4FY25) and flat in FY25, but management expects growth to rebound in FY26.

 

The focus remains on improving product mix by increasing share of non-participating or non-par products in the individual APE. Value of new business (VNB) is expected to clock double digit growth over FY25-27. The emphasis is growth via the agency channel, though the bancassurance and alternate channels also registered good growth.

 

The VNB margin expanded 80 basis points year-on-year (Y-o-Y) to 17.6 per cent at