1. At a Glance
LIC is like that giant uncle at every Indian wedding—sitting in the corner, eating all the food, and still controlling the family gossip. With₹5.6 lakh crore market cap,₹48,725 Cr annual profit, and61% share of India’s life insurance premiums, it’s not just the market leader, it’s the market itself. Stock trades at a humbleP/E of 11.5, because PSU tag = discount store. While private peers (HDFC Life, SBI Life) flex with fancy bancassurance and investor decks, LIC quietly collects ₹9 lakh crore+ in premium income like a kirana store with infinite credit customers.
2. Introduction
If India had a financial superhero, LIC would be it—minus the cape, plus the babudom. Founded in 1956 with a socialist soul, LIC became India’s financial nanny: from building highways to bailing out IPOs, it’s always “apna LIC.” Over time, it became India’s biggest landlord (₹51 lakh crore AUM), biggest insurer, and part-time bailout machine for other PSUs.
But cracks are showing. Market share in new business premium fell from 63.25% (FY22) to 61% (H1FY25). Policy count share slid from 75% to 69%. Even agents—once the army of blue-sari-and-tie warriors—are losing ground, with share slipping to 47.5%.
Still, numbers don’t lie:₹57,716 Cr new business premium in FY24, ₹2.46 lakh Cr renewal premiums, ₹48,725 Cr profit, and an embedded value of ₹7.27 lakh Cr. Claim settlement? 98%+. Try getting that kind of reliability from your mobile network provider.
3. Business Model (WTF Do They Even Do?)
LIC’s model is beautifully simple and brutally effective:
- Collect premiums (₹9,02,689 Cr in FY25).
- Invest that ocean of cash (₹51 lakh Cr AUM).
- Pay out claims and annuities.
- Pocket the spread.
Products:
- Participating policies (Par):Old-school endowment and money-back plans.
- Non-Par:ULIPs, term, annuity, pension.
- Group products:Corporate credit life, micro-insurance.
- Riders:Because Indians love add-ons (health, accident).
Mix FY24:
- Par: 58%
- Annuity/Pension: 25%
- Others: 17%
Distribution:
- 14.4 lakh agents (96% of new premium still via human push, not apps).
- Banca: 3.6% (Pathetic compared to HDFC/SBI Life).
- Digital: Exists, but basically WhatsApp forwards.
In short, LIC is
still the king ofagency-driven sales. Your family agent in the colony? Probably still sells LIC policies.
4. Financials Overview
| Metric | Latest Qtr (Jun’25) | YoY Qtr (Jun’24) | Prev Qtr (Mar’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹2,24,671 Cr | ₹2,11,952 Cr | ₹2,43,134 Cr | 6.0% | -7.6% |
| EBITDA (OP) | ₹10,474 Cr | ₹9,773 Cr | ₹21,514 Cr | 7.2% | -51.3% |
| PAT | ₹10,955 Cr | ₹10,527 Cr | ₹19,039 Cr | 4.1% | -42.5% |
| EPS (₹) | 17.3 | 16.7 | 30.1 | 3.6% | -42.5% |
Annualised EPS = ~₹77.At CMP ₹888, P/E = 11.5.
Commentary: Only LIC can post₹2.24 lakh crore sales in one quarterand the stock still yawns at 11x earnings.
5. Valuation (Fair Value RANGE Only)
Method 1:P/EEPS = ₹77. Industry average = 70x (private insurers). LIC trades at 11.5x. FV Range = ₹1,000–₹1,600.
Method 2:EV/EBITDAEV = ₹5.6 lakh Cr, EBITDA = ₹50,509 Cr (TTM). EV/EBITDA = 11x. Peers trade ~25x. FV = ₹10–12 lakh Cr.
Method 3:Embedded Value (EV Method)EV = ₹7.27 lakh Cr. At 1x EV = ₹1,150/share. At 1.5x EV = ₹1,700/share.
Educational FV Range:₹1,000 – ₹1,600.(This FV range is for educational purposes only and is not investment advice.)
6. What’s Cooking – News, Triggers, Drama
- New Products:Yuva Term, Digi Term, Bima Jyoti—basically LIC trying to sound like a fintech startup.
- Digital Push:72.9 lakh app users,
