A Comprehensive Overview of LIC’s Performance in H1 2023

In the dynamic landscape of the insurance sector, Life Insurance Corporation of India (LIC) has showcased resilience and adaptability in the face of industry fluctuations. As revealed in their recent financial report for the first half of 2023, LIC has demonstrated noteworthy accomplishments and strategic shifts that deserve attention.

Premium Income Trends: A Balanced Approach

LIC reported a Total Premium Income of INR 2,05,760 crore for the first half of 2023, reflecting a 10.72% decline compared to the same period in 2022. Despite this, Individual New Business Premium Income saw a 5.52% growth, reaching INR 25,184 crore.

Renewal Premium Income for individual business surged to INR 1,09,599 crore, showcasing a robust performance. However, Group Business total premium income witnessed a decline of 30.90%, underlining the cyclical nature of this segment.

Market Leadership and Strategic Moves

LIC continues to dominate the market with a 58.50% share in First Year Premium Income, affirming its leadership position in the Indian life insurance space.

While the individual business market share remains stable, the group business has experienced a significant decrease. LIC’s market share in Individual business and Group business stood at 40.35% and 70.26%, respectively, indicating a slight dip from the previous year.

Product Mix and Diversification

The company’s product mix strategy is progressing as planned, with a focus on a more balanced and value-enhancing portfolio.

The launch of three new Non-par products aligns with LIC’s strategy to increase the proportion of Non-par business, with Non-par individual APE witnessing a substantial YoY increase of 19.77%.

Financial Highlights and Growth Indicators

LIC’s Profit After Tax (PAT) for H1 2023 reached INR 17,469 crore, showcasing a growth of 44% compared to the same period last year.

The Indian Embedded Value (IEV) registered an impressive 21.74% increase YoY, reaching INR 6,62,605 Crore. Net Value of New Business (VNB) was INR 3,304 crore, maintaining a stable VNB margin of 14.6%.

The Solvency Ratio improved marginally to 1.90, indicating a robust financial position.

Channel Mix and Operational Efficiency

LIC’s agency force continues to play a pivotal role, contributing to 96% of new business premium and policies in the first six months of 2023.

The Banca and Alternate Channels (BAC) have seen growth, contributing 3.42% to new business premium and growing by 4.02% YoY. The overall expense ratio improved to 15.14%, showcasing operational efficiency.

Persistency and Customer Retention

Persistency ratios for various time periods have shown improvement both on premium and policy bases, reflecting LIC’s commitment to enhancing customer retention.

Efforts to improve persistency across cohorts have yielded positive results, especially in the 13th and 37th month categories.

Digital Transformation and Innovation

LIC’s focus on digital initiatives, exemplified by the Agent-assisted ANANDA app, has resulted in a remarkable 69.35% YoY growth, underlining their commitment to technological advancements and enhanced customer experience.

Claims Management and Financial Health

Claims processing for maturity and death claims has been robust, with a decrease of 7.19% in death claims and an increase of 8.22% in maturity claims compared to the same period last year.

Conclusion: Embracing Change for a Stronger Future

In summary, LIC’s strategic moves, financial growth, and adaptability to market shifts position it as a stalwart in the insurance industry.

Despite challenges, the company’s commitment to a diversified product mix, technological innovation, and customer-centricity sets a promising trajectory for the future.

LIC’s journey in H1 2023 reaffirms its commitment to creating lasting value for stakeholders and maintaining its leadership position in the Indian life insurance landscape.


The information provided in this article is for informational purposes only and does not constitute financial advice, an endorsement, or a recommendation. It is essential to conduct thorough research and consider your individual financial circumstances before making any investment decisions. The content presented here is based on publicly available information from Life Insurance Corporation of India (LIC) and is not intended to influence or guide investment choices.

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