In India, you will find several stocks that are performing too well. Among them, the LIC IPO is the best. There are several reasons behind considering LIC IPO stocks as one of the bests available in the market.
- The company’s Net Premium Income climbed at a CAGR of 9.30 percent from 3,37,18,539.65 lakhs in 2019 to 4,02,84,434.43 lakhs in 2021, resulting to a rise in Total Revenue from 5,60,78,439.38 lakhs in FY19 to 6,82,20,499.40 in FY21. Profit After Tax rose at a CAGR of 3.87 per cent from 2,68,849.66 lakhs in FY19 to 2,90,056.68 lakhs in FY21. The company’s 13-month Persistency Ratio rose to 67 per cent in FY21 from 66 per cent in FY19, showing an increase in the number of policyholders who paid their renewal payment.
- In terms of New Business Premium and Number of Policies/Schemes, LIC of India has the largest market share. As of December 2021, LIC’s market share for the New Business Premium was 66 per cent, much greater than the overall market shares of the private competitors. It also had a 74 per cent market share for the number of policies. LIC had a 25 per cent YoY increase in overall APE (Annual Premium Equivalent), with retail APE increasing 22 per cent YoY off a favourable base, hurting LIC’s market share, which fell from 43 per cent to 40 per cent in FY21. On the other hand, LIC’s amount guaranteed increased by 12 per cent year on year, representing a rise in market share to 18 per cent in FY21 from 17 per cent in FY20.
- LIC is one of the oldest and most powerful corporations in brand recognition. The organisation has received several major prizes nationally and worldwide for its brand image, marketing, and corporate achievement. LIC has also evolved as the world’s third most powerful and tenth most costly insurance brand.
- LIC’s product offerings include life health insurance policies, investment plans, whole life plans, cashback plans, term insurance plans, and insurance riders. Each has many schemes and plans to cater to the different age groups and types of investments for consumers.
- LIC has invested in several firms and government entities, allowing them to expand organically while also giving cash assistance. In addition, LIC has two subsidiaries and four associate firms that manage the pension fund, housing financing, banking, mutual funds, and cards.
- It boasts the most extensive agent network in the country. As of March 31, 2021, LIC has 13.53 lakh independent agents spread across the country, serving both rural and urban consumers.
- LIC has a market share of roughly 61 per cent in New Business Premiums and 71 per cent in Policy Numbers. On a stand-alone basis, LIC’s AUM more than doubled to 36.7 trillion in FY21.
- The organisation has the capability of expanding its product line and catering to clients by releasing additional items based on future demands.
- With new items, the corporation should be able to expand its footprint into new geographies.
- The corporation should prioritise advertising and marketing operations to boost new product offers and cater to younger clients.
- The insurance industry is one where technology has historically played a significant role. Blockchain and artificial intelligence are examples of advanced technologies that may assist the firm in various ways and boost the company’s operations on a larger scale.
- Life Insurance Corporation of India aims to diversify its product combination further by satisfying customer needs at all stages of life, increasing sales of existing non-participating goods, and launching new non-participating goods, particularly term insurance, health insurance, retirement products, and ULIP products. The Corporation also intends to improve the training provided to intermediaries on non-participating items and incentivise the sale of these products by granting simpler access to the higher-level agent club membership for selling these products.
- Life Insurance Corporation of India plans to expand its multichannel distribution system for individual products and increase efficiency. The business intends to strategically grow its agency network, increase agent productivity, and retain its focus on enhancing the quality and longevity of the agents it recruits. In addition, the company intends to hire more millennial and post-millennial employees by running social and digital media campaigns and other advertising campaigns to spread awareness of job prospects as an insurance provider in the millennial and post-millennial segments, as well as by conducting more online recruitment.
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