LIC share price drops 3.5% as November premiums decline 27% YoY
- LIC share price fell by 3.5% during Tuesday's trading, with premiums in November dropping by 27% year-on-year. Despite an overall rise in premiums for FY25, total and retail APE decreased by 19% and 12%, respectively. The stock's critical resistance remains at 1,000.
LIC share price: Life Insurance Corporation (LIC) stock dropped 3.5% during Tuesday's trading session as the life insurer encountered a tough month, with its premiums for November declining by 27% compared to the previous year.
Despite reporting a 16% rise in premiums over the first eight months of FY25, both total and retail annual premium equivalent (APE) for LIC fell in November by 19% and 12%, respectively.
LIC share price today opened at an intraday high of ₹982.95 apiece. However, LIC stock came under selling pressure soon and touched an intraday low of ₹951 per share.
According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, after failing to breach the 200 SMA yesterday, prices are undergoing a correction in today's session.
“The 1,000 level, aligning with the 200 SMA, remains a critical resistance. Unless surpassed, the upside is likely to stay subdued. On the downside, 940 serves as a strong support for the counter,” Bhosale said.
While LIC encountered challenges, the strong growth from private insurers helped offset the overall decline, underscoring the contrasting performance trends within the industry.
Nuvama Institutional Equities highlighted the impressive performance of private life insurers, which have shown a robust year-over-year growth of 15.4% in individual APE for the fiscal year 2025 to date (FY25TD), now reaching 21.2%. This growth is particularly noteworthy when compared to Life Insurance Corporation, which faced challenges, showing a decrease of 12.4% YoY with FY25TD growth at 7.3%.
The individual APE market share for private insurers has increased significantly to 68.9% for FY25TD, marking a substantial gain largely due to LIC’s performance in November 2024. Among private insurers, ICICI Prudential Life Insurance Company Ltd and HDFC Life Insurance Company Ltd have made notable strides in expanding their market shares. Furthermore, private insurers have demonstrated resilience, achieving a five-year compound annual growth rate (CAGR) of 14.1% in individual APE, according to Nuvama.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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