Citi has maintained a ‘Buy’ rating on Life Insurance Corporation of India (LIC), raising confidence in the stock with a target price of ₹1,370 — indicating an upside potential of approximately 55% from the current market price of ₹886.40.
The brokerage highlighted LIC’s robust performance in the first quarter of FY26, with the insurer reporting a 21% year-on-year increase in the value of new business (VNB). While growth in individual Annualized Premium Equivalent (APE) was muted at 5% YoY, group APE remained resilient.
Citi attributed the margin expansion primarily to a better product mix — particularly a rise in higher-margin non-participating policies — and a shift toward products with higher ticket sizes. Expense ratio improvements further supported profitability.
On the distribution side, LIC management pointed to “green shoots” in its agency business, including higher agent activation rates, increased average sum assured, and a younger and expanding agent base. However, Citi noted that stabilisation of LIC’s market share in individual business remains a critical factor to watch.
Despite the near-term challenges in individual growth, Citi sees LIC as well-positioned to benefit from structural shifts in product portfolio and distribution efficiency.
Disclaimer: The views and recommendations expressed in this article are those of the brokerage firm, Citi, as reported. This does not constitute a recommendation by this publication. Investors are advised to consult with a certified financial advisor before making any investment decisions.
