Life Insurance Corporation of India share price target

LIC is treading well towards increasing VNB by pushing product mix towards non- participating segment (8.9% in FY23 individual APE mix vs 7.1% in FY22) and sharp focus on improving persistency (improvement in all cohorts except 25M in FY23).

APE grew 12.5% YoY in FY23 led by strong 36% growth in non-par products; non-par constituted 8.9% of APE vs. 7.1% in FY22

Extensive presence, brand equity and leadership in group life business serve as strong moats, supporting NBP market share of over 60%

LIC is treading well towards increasing VNB by pushing product mix towards non- participating segment (9.45% in 9MFY23 Individual APE mix). However, volume growth
has outperformed the industry in 10MFY23TD (25% YoY growth for LIC vs 19% growth for private insurers in terms of total weighted APE), especially in group segment (52% YoY growth in 10MFY23 vs 26% growth of private insurers in terms of group weighted APE).

Key takeaways include: (1) Reiteration towards sustained path of VNB improvement (absolute as well as margin), (2) strategy of increasing bancassurance business.

Life Insurance Corporation of India (LIC) is the Indian insurance market leader with 44% share of the total APE market (on a weighted basis) as of FY22.