The corporate had posted a revenue of Rs 10,986 crore within the corresponding quarter final yr. Internet premium revenue grew 7% YoY to Rs 1.27 lakh crore in the course of the quarter.
In line with IRDAI information, LIC retained its management within the home life insurance coverage market with an general 60.1% share of first-year premium revenue. Throughout the quarter, it held a 38.89% market share within the particular person enterprise and 70.9% within the group enterprise.
Premium development was pushed by each segments. Particular person enterprise premium elevated 6% to Rs 75,416 crore from Rs 71,474 crore a yr in the past, whereas group enterprise premium rose 9% to Rs 51,834 crore from Rs 47,726 crore.
LIC offered 31.02 lakh particular person insurance policies in the course of the June quarter, up 2% from 30.40 lakh insurance policies within the year-ago interval. On an annualised premium equal (APE) foundation, whole premium stood at Rs 13,692 crore in Q1FY27, with the person enterprise contributing Rs 7,532 crore (55%) and the group enterprise accounting for Rs 6,160 crore (45%).
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The insurer additionally reported a pointy enchancment in profitability. Worth of latest enterprise (VNB) jumped 61% YoY to Rs 3,136 crore from Rs 1,944 crore, whereas the VNB margin expanded by 750 foundation factors to 22.9% from 15.4% a yr earlier.
LIC shares: Purchase, promote or maintain?
Goldman Sachs maintained its ‘Impartial’ ranking on LIC with a goal worth of Rs 475, implying an upside of round 22.5% from the present market worth. Whereas the brokerage famous that annualised premium equal (APE) development fell in need of its expectations, it stated stronger-than-expected worth of latest enterprise (VNB) development and a pointy enlargement in VNB margins, supported by a beneficial product combine, prompted it to boost its FY27-FY29 EPS estimates.
Emkay World reiterated its ‘Purchase’ ranking on LIC and retained a goal worth of Rs 550, implying an upside of round 42%. The brokerage highlighted better-than-expected margin efficiency, with the VNB margin increasing to 22.9% and VNB rising 61% YoY. It additionally raised its FY27-FY29 VNB margin estimates and earnings forecasts, citing an enhancing product combine, greater profitability and a stronger capital place.
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Motilal Oswal maintained its ‘Purchase’ ranking on LIC with a goal worth of Rs 480, implying an upside of round 24% from the present market worth. The brokerage pointed to the 61% YoY development in VNB and the enlargement within the VNB margin to 22.9%, pushed by a richer non-par product combine. It additionally raised its FY27-FY28 VNB margin estimates, supported by enhancing profitability, strong development within the safety enterprise and a stronger solvency place.
(Disclaimer: Suggestions, options, views and opinions given by the specialists are their very own. These don’t characterize the views of The Financial Instances)
