LIC reports 16% decline in retail APE, 300 bps below that of industry
The retail APE for LIC stood at a negative CAGR of 3.8% while the sector grew at a rate of 9% over two years, with private sector companies growing at 17%.
on Friday reported a 16% decline in retail annual premium equivalent (APE). The life insurance industry as a whole, however, reported a decline of 13% on a year-on-year (YoY) basis, stated a research report by .Overall, the retail APE for LIC stood at a negative CAGR of 3.8% while the sector grew at a rate of 9% over two years, with private sector companies growing at 17%. Among listed companies, LIC showed a decline of 3.8% while other major players like and ICICI Prudential showed impressive growth rates of 21.3% and 25.3%, respectively. grew at 2.2%.
For March, the industry reported a two-year total APE CAGR of 2.8%, with LIC reporting a decline in CAGR of 11.7% when the private sector showed a strong 16.7% growth, the report added.
In FY24, the two-year CAGR for retail APE of LIC only had modest growth of 3.9% while the industry’s was 11.6% with the private sector delivering strong growth at 15.8%.
Looking ahead to FY25, Avinash Singh of Emkay Global anticipates the sector to achieve around 11-12% growth in retail APE, with LIC targeting around 6-8% growth and the private sector aiming for approximately 13-15%.
In March 2023, there was rapid growth due to changes in personal taxation announced in the FY24 Union Budget. Looking at the two-year CAGR for March 2024, the retail APE shows a positive trend.
“As several challenges have been overcome”, added the brokerage firm, “and valuations are becoming more appealing, we remain positive on stocks in the sector”.
Currently trading on the BSE at Rs 971, LIC has yielded 79% returns in the last one year and the stock has gained 10.5% in the last one month.
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Source: Stocks-Markets-Economic Times
