News Reports: Govt nudging LIC to change product strategy in order to increase profitability

27 Oct 2022 , 07:35 AM

According to news reports, the government is pressuring LIC to change its product strategy to increase profitability in an effort to assist the nation’s largest insurer in realizing its full development potential and producing higher returns for investors.

Since Life Insurance Corporation (LIC) debuted on stock exchanges on May 17, it has been trading below the issue price of Rs949 per share. It was listed on the NSE for Rs872 each. The stock’s closing price on Tuesday was Rs595.50, a decrease of 0.72% from the previous close.

Foreign companies, however, continue to be bullish on LIC setting a higher target price for the coming year as they believe the insurer has a strong core operating Return on Embedded Value (ROEV), insignificant high-risk assets, and good medium-term market potential.

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