Shares of Life Insurance Corporation of India (LIC) jumped as much as 5% in early trade after the company reported a stellar 23% year-on-year jump in fourth-quarter net profit. The insurance behemoth reported a net profit of ₹13,762 crore for the quarter ended March 31, aided by strong premium growth and improved asset quality. LIC’s net premium income also witnessed a significant spurt to ₹1.52 lakh crore against ₹1.31 lakh crore in the corresponding quarter of the previous fiscal year, signalling strong underlying operational momentum.
Along with the strong financials, the LIC board recommended a final dividend of ₹6 per share for the financial year subject to shareholders’ approval. This takes the total dividend for the year to ₹10 a share, lifting sentiment among investors further. The company’s solvency ratio, a key measure of an insurer’s ability to meet its long-term obligations, remained stable and well above the regulatory requirement, indicating a healthy financial buffer.
Market analysts received the earnings report positively with prominent brokerage firm JM Financial raising its target price on the stock. Analysts said LIC’s changing product mix in favour of high-margin non-participating products and its strong market share were key drivers for future growth. LIC is well placed to tap India’s under-penetrated insurance market and is an attractive long-term bet, the brokerage said. This bullish sentiment and a strong institutional buying encouraged the stock to see heavy trading volumes and outperform benchmark indices to lead the rally in the financial space.
