The large-cap insurance company increased 9.2 percent to Rs 674.65 in intraday trading on Friday from its previous close after the company chairman announced the launching of new products.
Life Insurance Corporation (LIC) plans to introduce three to four new products in the coming months, aiming for a double-digit increase in new business premiums during the current fiscal year.
“We are projecting double-digit growth over the last year. We are going to achieve that because a recent trend is showing an uptick in individual retail business. In order to further reinforce our commitment, we are going to launch some new attractive products,” LIC Chairman Siddhartha Mohanty stated.
The report’s chairman stated that LIC plans to introduce a single product during the first week of December and is optimistic about the product’s potential for commercial success.
Life Insurance Corporation of India (LIC) is set to disrupt the market with its new product that offers guaranteed returns and a lifelong benefit of 10% of the sum assured after the policy matures.
This innovative product aligns with the widespread demand for transparency in cost structure and anticipated returns over extended periods. Additionally, LIC plans to launch 2-3 more policies this year to achieve double-digit growth in new business premiums.
LIC remains the market leader in the life insurance sector, holding a 58.50% overall market share. In the first half of the current financial year, LIC’s new business premium income in the individual segment grew by 2.65% to ₹25,184 crore. The company’s Assets Under Management (AUM) rose to ₹47,43,389 crore, a 10.47% increase from the previous year.
The company has reported its net revenue rose 9.2 percent quarter on quarter from Rs 98,755 crores in Q2FY23 to Rs 1,07,876 crores in Q2FY24. In addition, net profit rose 12 percent quarter on quarter, from Rs 8,651 crores in Q2FY23 to Rs 7577 crores in Q2FY24.
The company’s promoters hold a 96.50 percent stake in the company, with 0.10 percent owned by foreign institutional investors, 2.56 percent owned by the general public, and 0.83 percent owned by domestic institutional investors.
Life Insurance Corporation of India (LIC) is the country’s largest insurer. The company provides both participating and non-participating insurance products such as unit-linked insurance products, saving insurance products, term insurance products, health insurance, and annuity & pension products.
Written by Sriram KV
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