Shares of Life Insurance Corp. are set to post their longest winning streak since debut after Motilal Oswal initiated coverage with a ‘buy’ citing strong brand, vast distribution and reasonable valuation.
LIC has maintained its market leadership in the life insurance industry even as it “differs in its growth strategy versus private peers on distribution (agent dominated versus banca for private), product mix (traditional heavy versus ULIPs, non-par, protection for private), and high mix of single premium (82% of total new business premium versus 47% for private in FY22) with heavy reliance on group business (72% of total NBP versus 39% for private in FY22)”, the brokerage said in a July 5 report.
India’s largest insurer, Motilal Oswal said, aims to ramp up the mix of non-participating policy business, driven by new product launches in the segment.
It enjoys a high market share in the annuity segment due to its strong positioning in the group business. Annuity, the report said, has enabled LIC to report high value of new business margin in the non-par segment and it has an “immense growth potential”.