LIC Share Price Target 2025 : Share of the LIC ( Life Insurance Corporation of India) is currently trading at around Rs.619 as against its IPO price of Rs.949. People who want to invest in LIC for long term, are asking for the share price target of LIC for 2025. In this article, we will discuss and analyse about the present business and future business prospects of the company and based on our analysis, will also tell the target share price of the company for 2025.
Life Insurance Corporation of India (LIC) is the largest life insurance company in India, with a market share of over 70%. Founded in 1956, it has been a cornerstone of the Indian insurance industry for over six decades. With its extensive network of agents and branch offices, LIC has played a critical role in increasing the penetration of life insurance in the country. In this article, we will explore the future business prospects of LIC.
Demographic Trends and Growth Prospects
The Indian insurance market is expected to grow at a CAGR of 12.6% between 2021 and 2026, driven by factors such as increasing awareness about insurance, rising disposable income, and a growing middle class. LIC is expected to benefit from these trends, given its dominant market position and strong brand recognition.
Moreover, India is home to a young and growing population, with a median age of just 28.4 years. This demographic dividend provides a significant growth opportunity for the insurance industry, as more people enter the workforce and seek to protect their families and assets.
Digital Transformation and Customer Experience
LIC has been investing heavily in digital transformation initiatives in recent years. The company launched its digital platform, LIC e-Services, in 2016, which allows customers to purchase policies, pay premiums, and access policy details online. In 2020, the company launched the LIC Customer mobile app, which provides a range of services, including policy purchase, premium payment, and claims settlement.
These digital initiatives are crucial for enhancing the customer experience and improving operational efficiency. With the rise of insurtech startups and digital-first insurance companies, LIC will need to continue to invest in digital transformation to remain competitive and meet customer expectations.
Diversification and Innovation
LIC has traditionally focused on offering life insurance products, but in recent years, the company has diversified into other areas, such as health insurance, pension plans, and mutual funds. This diversification strategy has helped the company to mitigate risks and tap into new growth opportunities.
Furthermore, LIC has been investing in innovative products and services to attract new customers and retain existing ones. For instance, the company has launched the Jeevan Akshay VII plan, which provides a guaranteed lifelong pension to policyholders. The company has also launched the Pradhan Mantri Vaya Vandana Yojana (PMVVY), a pension scheme for senior citizens that offers a guaranteed return of 7.4% per annum.
Expansion into International Markets
LIC has a presence in several international markets, including the UK, Singapore, Sri Lanka, and Nepal. The company has been exploring opportunities to expand its international footprint further, particularly in emerging markets with a significant untapped demand for insurance.
In 2020, LIC announced its plans to set up a subsidiary in Bahrain to serve customers in the Middle East and North Africa (MENA) region. This move is in line with the company’s strategy to diversify its business and tap into new growth opportunities.
Challenges Ahead
Despite its dominant market position and strong brand recognition, LIC faces several challenges in the coming years. One of the biggest challenges is the emergence of insurtech startups and digital-first insurance companies that are disrupting the traditional insurance industry.
Moreover, the COVID-19 pandemic has led to a decline in new business premiums for LIC, with the company reporting a 7.4% decline in new business premiums in FY 2020-21 compared to the previous year. The pandemic has also led to increased claims and a rise in surrenders, which could impact the company’s profitability in the short term.
Conclusion
In conclusion, the future business prospects of LIC are bright, given the growing demand for insurance in India, the company’s dominant market position, and its efforts to diversify and innovate.
LIC Share Price Target 2025
In view of the above analysis and discussion, we can say that share price of LIC can touch the level of around Rs.1000 by the end of 2023. The share price may see the level of around 1200 to 1500 by the end of 2024 and the share price target for 2025 is likely to be around Rs.2000.
Disclaimer : Share Prices are subject to market fluctuations and are dependent on several factors. These predictions are based on the current market conditions and the future market expectations. Investors are advised to take into consideration all these factors before making any investment in Capital Market. This article should not be treated as Investment advisory and is for general guidance purpose only. Moneyinsight does not offer investment advice and does not encourage any action based on its content.
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