Shares of Life Insurance Corporation fell 4% to an intra-day low of Rs 947.50 after the company’s premium contracted 27% on year.
The company’s retail annual premium equivalent (APE) has fallen to 12.4% year-on-year to Rs Rs 2,215.5 crore in November 2024, compared to Rs 2,528.4 crore in November 2023. While, the total APE dipped by 19.4% YoY to Rs 3,154 crore in November 2024, against Rs 3,915.3 crore in November 2023.
Elara Securities on LIC shares
Overall APE for November 2024 grew a mere 3% YoY in November 2024 vs 11% YoY in the previous month for the industry with LIC reporting a decline of 19% while private firms reported 18% YoY growth during the month. Within private firms, growth was driven by IPRU, MAX Life and small firms.
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JM Financial Services on LIC shares
November 2024, saw private life insurers move towards a normal 15.3% year-on-year growth in individual annual premium equivalent, even as two top players, SBI Life and HDFC Life reported weak prints of 8.5% and 2.7% YoY, respectively. LIC expectedly reported another month of YoY contraction with individual APE down 12.4% YoY. Overall, the industry collected individual APE of Rs 8520 crore, of which private insurers contributed 74.0%. IPRU and Max Life continued to impress with 28.1%/24.8% YoY growth. IPRU, interestingly, reported 122.7% growth in group APE, which is likely due to some large deal wins.
LIC in Q2
A month back the life insurer reported a 4% on-year decline in its standalone net profit at Rs 7,621 crore for the second quarter of the current financial year, compared to Rs 7,925 crore in the year-ago quarter. Its net premium income for the reporting quarter grew by 11% year-on-year to Rs 1.19 lakh crore, against Rs 1.07 lakh crore in the same quarter last year. The company’s income from investments increased by 16% YoY to Rs 1.08 lakh crore in Q2 FY25,
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