India’s Largest Insurance company with a market share of 58 percent in India, engaged in offering a range of individual and group insurance solutions jumped 5 percent in the day’s trade upon increasing its holding stake in Dr. Reddy’s Limited to more than 5 percent and plans to acquire a private health insurer for expansion.
With a market capitalization of Rs. 6,51,475 Crores, the shares of Life Insurance Corporation of India Limited were trading at Rs. 1,029.55 per equity share, up 2.77 percent from its previous day’s close price of Rs. 1,001.80.
Life Insurance Corporation of India Limited has increased its holding position in Dr. Reddy’s Laboratories Limited from a 4.95 percent stake consisting of 82,61,579 Equity shares to a 5.01 percent stake consisting of 83,69,879 Lakh equity shares by purchasing an additional 1.08 Lakh equity shares or 0.06 percent at an average price of Rs. 6,059.82 for a consideration of Rs. 65.62 Crores through the open market purchase.
Dr. Reddy’s Laboratories Limited is a leading India-based pharmaceutical company that offers a portfolio of products and services, including Active Pharmaceutical Ingredients (APIs), Custom Pharmaceutical services (CPS), generics, bio similars, and differentiated formulations.
In Addition, the Life Insurance Corporation of India Limited (LIC) is planning to enter the health insurance segment through the acquisition of a private health insurer, as part of its strategy to gain a foothold in the expanding health coverage sector.
Life Insurance Corporation of India Limited is the largest insurance provider in India with a market share of 58.87 and it is the 10th largest life insurer globally by total premium volume. It offers a range of individual and group insurance solutions including participating, non-participating, and unit-linked lines of businesses
Some of the products sold by Life Insurance Corporation of India Limited are Endowment plans, Pension Plans, Unit Linked Plans, Micro Insurance Plans Withdrawn Plans, Health Plans.
As of FY24, It has an AUM of Rs. 51.21 Lakh Crores and in terms of performance parameters, it has a solvency ratio of 1.98, a claim paid ratio of 98.15 percent, an overall expense ratio of 15.57, a commission ratio of 5.46 percent and it has a Yield on Investment of 8.02 percent. The number of individual policies sold in FY24 is 2.03 Crore and the Number of Policies sold through the BANCA channel is 3.32 Lakh.
Its Revenue grew by 18.82 percent from Rs. 2,00,178 Crores in Q4FY23 to Rs. 2,37,842 Crores in Q4FY24, accompanied by profits of Rs. 13,427 Crores to Rs. 13,762 Crores.
Written by: Bharath K.S
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