MC Podcast | Why are investors ignoring LIC and what can change sentiment?

LIC’s net profit surged in the September quarter, but that has done little for the stock price, which is still a good 30 percent below its issue price. The profit figure may have been boosted by one-off factors, but there were plenty of other positives in the financial performance, which the market is not yet willing to acknowledge.

In this podcast, Moneycontrol Pro analyst Neha in conversation with Santosh Nair, explains the factors behind the LIC stock’s underperformance and what can change sentiment for the country’s number one life insurance company.

The points discussed in the podcast include:

• The product portfolio of LIC and its strengths and weakness

• The key parameters to value a life insurance company

• What exactly is embedded value and why is it important for a life insurer

• What are PAR and non-PAR products?

• How LIC stacks up compared to its private sector peers?

• What could potentially lead to a rerating of LIC?

• Simplified: Value of New Business, New Business Premium, Annualised Premium Equivalent

• What could improve sentiment for life insurance companies in general?