Buy Life Insurance Corporation of India; target of Rs 1100: ICICI Securities

ICICI Securities is bullish on Life Insurance Corporation of India has recommended buy rating on the stock with a target price of Rs 1100 in its research report dated August 11, 2025.

Broker Research

August 14, 2025 / 13:23 IST

BUY

26 Aug, 2025 12:21

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ICICI Securities's research report on Life Insurance Corporation of India

LIC saw APE/VNB grow 9.4%/20.7% YoY in Q1FY26. Strategic initiatives have tracked well consistently in terms of pushing product mix towards non-participating (30% of individual APE in Q1FY26 vs. 9%/18%/28% in FY23/FY24/FY25) and revision in pricing/product strategy should maximise value for all stakeholders with changes such as hike in surrender value, re-designing of products, higher ticket sizes. There is expansion in non-agency distribution channels (6.9% of individual NBP in Q1FY26 vs. 3.9%/5.6% in FY24/FY25), focus on agency (total no. of agents stands at 1.49mn, as of Jun’25; 4.3% YoY growth) and improvement in digital initiatives (DIVE/Jeevan Samarth). We believe, a product mix-driven possible rise in VNB margin is achievable – well-demonstrated by LIC. However, volume growth shall be key for double-digit volume VNB growth.

Outlook

Maintain BUY; TP at INR 1,100 (earlier INR 1,040) Our valuations are based on 0.75x FY27E (earlier 0.7x) EV of INR 9.3trn. Our multiple adequately reflects the risk of EV sensitivity to market movement and a lower core RoEV profile (compared to peers) on a high base.

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