India's LIC reports 17 Percent rise in premium income to 2.32 trillion Rupees in fiscal 2023
New Delhi: The Life Insurance Corporation of India (LIC) has recorded a significant 16.67% growth in premium income for fiscal year 2022-23, reaching a total of ₹2.32 trillion. This highlights LIC's dominance in the insurance industry, with no other company coming close in terms of sheer volume. As of March 2023, LIC holds a market share of 62.58% in terms of premiums collected.
In March, private insurance companies collected a significant amount of premium as customers rushed to take advantage of the tax exemptions for non-linked policies before they were withdrawn on April 1st, according to the Life Insurance Council. However, LIC's premium
growth for FY23 is still impressive, ranking second among its listed peers, with HDFC Life leading at 18.83%, followed by SBI Life at 16.22% and ICICI Prudential Life Insurance Company at 12.55%.
LIC, India's leading insurance company, saw its premium income surge by 16.67% to reach ₹2.32 trillion for FY23. It maintained a market share of 62.58% as of March 2023, with no other company even close in terms of volume. In contrast, private insurers collected a substantial premium in March 2023, given the rush by customers to benefit from tax exemptions for non-linked policies that ended on April 1.
LIC's premium growth in
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FY23 is second only to HDFC Life's 18.83% among listed peers, followed by SBI Life and ICICI Prudential Life Insurance Company at 16.22% and 12.55%, respectively. The company's growth in individual single premium and individual non-single premium was 3.30% and 10%, respectively, while its group single premium surged by 21.76% to ₹1,67,235 crore.
LIC's premium for the individual category in March 2023 exceeded ₹10,000 crore, the highest among all life insurance companies, with HDFC Life, SBI Life, and Tata AIA Life trailing behind. In the individual non-single premium segment, LIC grew by 10.49% from March 2022 to March 2023, reaching ₹6,077.97 crore.
a report by Kotak Institutional Equities released in January, insurers listed on the stock exchange are predicted to achieve a 15-60% increase in the value of new business for Q4 FY23 due to enhancements in nonpar business, term business, and operating leverage.
In February 2023, Motilal Oswal initiated a "buy" call on LIC's share, with a target price of ₹830 per share, citing a gradual diversification of product or channel mix being underway, and the company having all the levers in place to maintain its leadership position.
LIC's strong growth in premium income for FY23 highlights its continued dominance in the Indian insurance market.