Can LIC Deliver Double-Digit Growth Despite Weak ULIP Demand?

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Can LIC Deliver Double-Digit Growth Despite Weak ULIP Demand?

Life Insurance Corporation of India (LIC) shared key management insights after its latest quarterly performance. While ULIP demand remains under pressure due to market conditions, management remains optimistic about growth prospects and expects Annualized Premium Equivalent (APE) growth in the early double-digit range during FY27.

Key Management Commentary

  • ULIP demand remained weak due to prevailing market conditions.
  • Management highlighted uncertainty arising from the ongoing Middle East crisis.
  • LIC aims to increase the share of participating (Par) products to 35% of overall operations.
  • Company expects APE growth in the early double-digit range during FY27.

Why ULIP Demand Is Under Pressure

ULIP products are closely linked to equity market performance and investor sentiment. Recent market volatility and geopolitical uncertainties have made investors more cautious, resulting in softer demand for market-linked insurance products. This trend has affected several insurers across the sector.

Growth Strategy:
LIC is focusing on increasing the contribution of participating products, which offer policyholders a share in insurer profits and generally provide more stable demand compared to ULIPs during volatile market phases.

Management Outlook For FY27

Despite challenges from geopolitical developments and softer ULIP demand, LIC management remains confident of delivering healthy premium growth. The insurer expects early double-digit APE growth during FY27, supported by product mix optimization, distribution strength, and a greater focus on participating products.

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Investor Takeaway

Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, observes that LIC's emphasis on expanding its participating product portfolio could improve business stability amid uncertain market conditions. Investors may monitor premium growth trends, product mix changes, and management's ability to achieve its FY27 growth targets.

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Read Free content at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.

SEBI Disclaimer: This article is for educational and informational purposes only and should not be construed as investment advice or a recommendation to buy, sell, or hold any security. Investments in securities are subject to market risks. Please consult your financial adviser before making investment decisions.

Written by Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.

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