LIC shares hit Life Time high today. Here’s what PM Modi said

LIC shares jumped 3% today following Prime Minister Narendra Modi’s remarks highlighting the company’s strength and recent stock market success.

Modi addressed rumors previously spread about India’s largest life insurer, emphasizing that despite negativity, the stock reached a record high of Rs 1,050.50. It closed at Rs 1,045, still representing a significant gain. This also marks a milestone as LIC surpassed its 2022 IPO price of Rs 949.

The Prime Minister emphasized the overall improvement in Public Sector Undertakings (PSUs). He stated that their net worth has doubled from Rs 9.5 lakh crore in 2014 to Rs 17 lakh crore today, with net profit rising from Rs 1.25 lakh crore to over Rs 2.5 lakh crore. This comes just a day before LIC announces its quarterly results and considers an interim dividend declaration.

Key points:

  • LIC share price surged 3% after PM Modi’s speech.
  • Modi addressed criticism of LIC, highlighting its record-high stock performance.
  • He emphasized the positive changes in PSUs, including rising net worth and profits.
  • LIC’s board meeting tomorrow may announce quarterly results and a potential interim dividend.

Competitors of LIC

LIC’s major competitors in the Indian life insurance market include private players like:

  • HDFC Life: The largest private life insurer by market share (14.7% vs. LIC’s 66.1%) and enjoys strong bancassurance partnerships, leading to impressive premium growth.
  • ICICI Prudential Life: Known for its innovative product offerings and digital focus, it holds a 8.8% market share and has shown consistent profitability.
  • SBI Life: Backed by India’s largest bank, SBI, it holds a 6.1% market share and benefits from extensive branch network access.
  • Kotak Mahindra Life: Known for its niche product offerings and customer-centric approach, it holds a 3.6% market share and exhibits strong growth potential.

While LIC dominates overall, private players have been gaining ground in recent years, particularly in the non-traditional segment. Private players often exhibit higher profitability and growth rates compared to LIC, though LIC benefits from its extensive agent network and brand trust. The competition pushes innovation and product diversification across the industry.

Sharing Is Caring: