LIC shares drop nearly 4% after November premium slump

Life Insurance Corporation of India (LIC) shares slipped nearly 4 per cent on December 10, marking a reversal after 4 consecutive days of gains. The stock touched an intraday low of Rs 950.7, declining by 3.61 per cent during early trade.

The drop in stock performance follows a 27 per cent year-on-year decline in November premiums for the state-run insurer. According to reports, LIC’s total and retail annualized premium equivalent (APE) declined by 19 per cent and 12 per cent, respectively, in November.

Stock performance trails market returns
LIC shares have delivered an 11.26 per cent return year-to-date, underperforming the benchmark Sensex, which has risen by 12.84 per cent during the same period. The recent dip has raised concerns among investors, despite the company’s otherwise steady performance this year.

LIC explores health insurance opportunities
On a strategic front, LIC’s MD and CEO Siddhartha Mohanty recently announced plans to enter the health insurance market. Speaking during an earnings call in November, Mohanty confirmed that groundwork is underway to acquire a stake in an existing standalone health insurer within the current financial year.

FDI stance garners attention
Amid discussions about increasing foreign direct investment (FDI) limits in the insurance sector, LIC has reportedly raised no objections to the Centre’s proposal for 100 per cent FDI. The company has submitted its recommendations to the government, reflecting a proactive approach to evolving regulatory landscapes.

LIC’s recent stock movement underscores the impact of premium performance on investor sentiment. As the insurer diversifies its portfolio and adapts to changing market conditions, stakeholders will watch closely for signs of recovery.