BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Life Insurance Corporation of India has maintained its market leadership position in the life insurance industry underpinned by its strong brand, vast distribution, and superior customer-connect despite the advent of a large number of private players.
During FY22, LIC accounted for 63%/46% of the total new business premium/annualized premium equivalent with a distinct focus on participating business that formed 70%/92% of individual NBP/APE, respectively, in nine months-FY22.
Unlike private peers, LIC relies on its dominant agency channel (1.3 million agents, 54% of industry as of March 31, 2022) to distribute insurance products; yet it has maintained a strong control on the cost ratios.
We estimate LIC to deliver ~10% compound annual growth rate in NBP during FY22-24E while the of new business margin is likely to improve to 13.6% on improving product mix and higher profit retention.
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