Life Insurance Corporation of India: Dinosaur or Death Star of Indian Insurance?

1. At a Glance

LIC is still the Big Boss of Indian insurance, with a 66%+ market share in premiums and 68% in policies. But the old warhorse is under pressure—from private insurgents and its own complexity. Is LIC the value trap… or a sleeping giant?

2. Introduction with Hook

If the Indian insurance sector were an IPL match, LIC is that 40-year-old player with 50,000 runs, 3 knee surgeries, and still opening the innings.

• Largest life insurer in India with ₹5.87 lakh crore market cap.
• 68.7% market share by number of policies (H1 FY25).
• ROE of 46%. And yes, that’s higher than many tech startups’ revenue growth.

But here’s the twist: while profits are booming, revenues are crawling like a turtle in molasses.

3. Business Model (WTF Do They Even Do?)

Let’s decode the 800-pound gorilla.

Participating Products: Policyholders share in the profits (aka the bhai-bandhu model).
Non-Participating Products: Fixed benefits, no profit-sharing.

• Term Insurance
• ULIPs
• Annuities
• Health Insurance

Plus, LIC is India’s largest asset manager (₹50+ lakh crore AUM). Also a mega shareholder in half of NSE 500 companies. Basically, LIC is part insurer, part mutual fund, part government’s piggy bank.

4. Financials Overview

Takeaway:
After a bumpy start post-IPO, LIC’s profitability has skyrocketed. FY25 net profit grew 18%, riding on better