Shares of Life Insurance Corporation of India (LIC) fell nearly 4 percent on December 10, marking a reversal after 4 consecutive days of gains. The stock touched an intraday low of Rs 950.7, down 3.61 percent during early trade.
The decline in stock performance follows a 27 percent year-over-year decline in November premiums for the state-run insurer. According to reports, LIC’s total and annualized premium equivalent (APE) fell by 19 percent and 12 percent, respectively, in November.
Stock performance tracks market gains
LIC shares have delivered a return of 11.26 percent year to date, underperforming the benchmark Sensex, which rose 12.84 percent during the same period. The recent dip has raised concerns among investors, despite the company’s steady performance this year.
LIC is exploring health insurance opportunities
On the strategic side, LIC MD and CEO Siddhartha Mohanty recently announced plans to enter the health insurance market. Speaking on an earnings call in November, Mohanty confirmed that the groundwork to acquire a portion of existing private health insurance is still underway this fiscal year.
The FDI situation is attracting attention
Amid discussions about increasing foreign direct investment (FDI) limits in the insurance sector, LIC has reportedly expressed no objection to the Centre’s proposal for 100 per cent FDI. The company has sent its recommendations to the government, showing a fast track to the development of regulatory areas.
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 be watching closely for signs of recovery.
