LIC Achieves Strong Revenue Growth in FY 2023, Registers ₹2.32 Trillion in Premiums

During fiscal year 2022-23, Life Insurance Corporation of India (LIC) witnessed a growth of 16.67%. With this, the total premiums collected has increased from ₹1.99 trillion to ₹2.32 trillion. The company holds a substantial market share of 62.58% in premiums collected as of March 2023.

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Private insurance companies in India have seen a surge in premium collection in March due to increased customer interest ahead of the April 1 withdrawal of tax exemptions for non-linked policies. The Life Insurance Corporation of India (LIC) has recorded the second-highest growth in premiums for fiscal year 2023. It holds the position with HDFC Life leading at 18.83%, followed by SBI Life at 16.22%, and ICICI Prudential Life Insurance Company at 12.55%.

During fiscal year 2023, the individual single premium of the insurance giant experienced a growth of 3.30%, while the individual non-single premium grew by 10%. Notably, the group single premium witnessed a substantial increase of 21.76%, rising from ₹1,37,350.36 crore to ₹1,67,235 crore.

In March 2023, LIC has the highest premium collection exceeding ₹10,000 crore, in the individual category among all life insurance companies in India. HDFC Life, SBI Life, and Tata AIA Life follow with premiums of ₹2,989.17 crore, ₹2,318.77 crore, and ₹1,884.41 crore, respectively. In the individual non-single premium segment, LIC saw a growth of 10.49%, with premiums increasing from ₹5,501.12 crore in March 2022 to ₹6,077.97 crore in March 2023.

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Kotak Institutional Equities published a report in January predicting that listed insurers would witness a growth of 15-60% in their value of new business during the fourth quarter (Q4 FY23). This growth is expected to be driven by an improvement in term business and non-par business, as well as enhanced operating leverage.

Motilal Oswal recommended a “buy” call on LIC’s shares in February 2023, setting a target price of ₹830 per share based on Q3 FY23 results and September FY24 estimates. The report noted LIC’s diversification of product and channel mix and its ability to maintain its leadership position with all necessary levels in place.