The Dynamic Surge in LIC Shares : Explore the dynamic surge in LIC shares, witnessing a historic 10% gain amidst market slowdown. Delve into LIC’s growth strategy for 2023-24, aiming for double-digit premium growth through the launch of innovative products, including a new service set for December.
The Dynamic Surge in LIC Shares :Life Insurance Corporation’s (LIC) new policy premium in the individual income category experienced a growth of 2.65%, reaching Rs 25,184 crore in the first half, compared to Rs 24,535 crore in the corresponding period last year.
On the last trading day of the week, LIC shares defied market sluggishness, surging 10% and achieving their most significant single-day gain since listing. The shares peaked at Rs 681.80 during trading, closing at Rs 677.65. Despite this remarkable performance, the stock still trades at a 44% discount from its issue price of Rs 949. It’s noteworthy that LIC’s IPO was launched in May 2022 and has faced a decline since its listing on May 17, 2022, reaching a low of Rs 530.05 on March 23, 2023.
LIC’s Growth Strategy for 2023-24: Plans to Launch New Products for Double-Digit Premium Growth
Life Insurance Corporation (LIC) aims for double-digit growth in premium income for new policies in the fiscal year 2023-24. To achieve this, the company plans to introduce three to four new products in the upcoming months. LIC Chairman Siddharth Mohanty revealed that a new service is scheduled for launch in the first week of December, with expectations of a positive market response.
Innovative Features of the New Service: Assured Returns and Lifetime Benefits
Mohanty disclosed some features of the upcoming service, emphasizing assured returns. After completion, policyholders will receive 10% of the sum assured for a lifetime. Anticipating a disruptive impact on the market, Mohanty highlighted the demand for transparency in premium payments and future returns over an extended period. The new service will also include features such as a loan facility and premature withdrawal.
LIC’s Robust First-Half Performance: Premium Income Sees 2.65% Growth
In the first half of the fiscal year 2023-24, LIC’s premium income from new policies in the individual category rose by 2.65% to Rs 25,184 crore, compared to Rs 24,535 crore in the same period the previous year. The new policy premium encompasses the insurance premium payable or lump sum payment made by the policyholder in the initial policy year of the life insurance contract.