Life Insurance Corporation of India (LIC) shares closed at ₹926 on the National Stock Exchange on Friday, representing a gain of 3.34 per cent, or ₹29.90, from the previous close of ₹896.10. The stock opened at ₹910 and reached an intraday high of ₹936.95 before settling lower.
Citi has reaffirmed a ‘Buy’ rating on LIC with a target price set at ₹1,345, driven by robust performance in the second quarter and ongoing adjustments to the product mix. The brokerage emphasized shifts in the business mix, indicating that stabilizing market share in individual Annual Premium Equivalent (APE) will be crucial for the stock’s revaluation. Citi anticipates that increasing volumes will enhance operating leverage and sustain the growth trajectory of the Value of New Business (VNB), while also highlighting the opportunity to unlock trapped value amid promoter engagement with investors regarding potential stake sales.
This optimism is bolstered by LIC’s half-yearly results published on November 6, which indicated a 16.36 per cent rise in profit after tax, amounting to ₹21,040 crore for the six months ending September 30, 2025. However, the company reported a quarterly net profit of ₹10,098 crore, an increase from ₹7,729 crore year-on-year, while the APE remained relatively stable at ₹16,382 crore compared to ₹16,465 crore in the prior year.
LIC’s strategic pivot toward non-participating products has yielded positive outcomes, as evidenced by the Non-Par APE share in individual business rising to 36.31 per cent from 26.31 per cent a year ago. The VNB margin expanded by 140 basis points to 17.6 per cent, in addition to a 146 basis point improvement in the expense ratio to 11.28 per cent. Furthermore, assets under management increased by 3.31 per cent to ₹57.23 lakh crore, although the company’s overall market share declined to 59.41 per cent from 61.07 per cent.
Published on November 7, 2025.
