LIC Q4 Snapshot: Product Line, Dividend and Other Key Things to Watch

is set to announce its first results on Monday. All eyes would be on the growth prospects and the evolution of the product mix. Investors can watch the persistence ratio, which should remain positive. Additionally, they would also track the cast mix and cost ratio.

The ET NOW survey predicts new business premium growth of 6-7% in FY22.

The New Business Value (NBV) margin was 9.3% in FY21. The ET NOW survey sees an 11% increase on an annual basis.

In a filing to the BSE, LIC said last week that it would also consider a dividend, if any, today. LIC shareholders would closely watch the decision.

The Rs 20,557 crore IPO, which ran from May 4 to May 9, was subscribed 2.95 times. The certificate debuted on May 17 at a discount of around 9% off the issue price. On Friday, the certificate stood at Rs 821.55, down 13.4% from the issue price of Rs 949.

Macquarie brokerage, while launching a hedge on the stock on May 17, said the product mix for LIC in FY22 compared to FY21 remained the same, collective business/single bonuses dominating the overall product line.

The share of non-pars has been around 5-6% in the overall APE, and it is critical that LIC further develop this business to drive VNB’s margins and growth, the brokerage said.

The brokerage said it hasn’t seen any pivot from LIC to selling high-margin products so far. Feedback from conversations with some LIC agents as well as some competitors reveals that not much has changed on the ground regarding LIC’s approach to selling more of these high-margin non-peer products.

(Disclaimer: The recommendations, suggestions, views and opinions given by the experts belong to them. These do not represent the views of Economic Times)

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