LIC share price target 2022, 2023, 2024, 2025, and 2030: In this article, you will learn about LIC share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals and financials of the company.
For every investor, it is important to know about the company in which they are investing, to get the confidence to hold the stock for the long term. To make it clear to you, in this article we have mentioned LIC share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals of the company.
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LIC Share Price Target 2022, 2023, 2024, 2025, 2030
LIC provides a diverse range of insurance products that cater to the needs of various segments of the population in India and abroad. It provides customized insurance solutions based on their unique financial needs and risk profile, as well as assistance in resolving them.
The Life Insurance Corporation (LIC), also known as the Bharatiya Jeevan Beema Nigam, is an Indian government corporation founded in 1956. It is an insurance firm headquartered in Mumbai with 8 zone offices and 101 divisional offices. LIC provides mutual funds, health insurance, and investment management services in addition to life insurance.
LIC is India’s largest insurance firm, with 2048 completely computerized branches, 8 zonal offices, 113 divisional offices, 1381 satellite offices, and corporate offices spread around the country. In various Indian cities and towns, the country is divided into 54 customer zones and 25 service centers. For selling life insurance to the general public, LIC has 1,337,064 individual agents, 242 corporate agents, 89 referral agents, 98 brokers, and 42 banks.
LIC Company Profile
|No. of Employees||114,000|
|Market Cap||$13.5 Billion (2021)|
|Annual Revenue||$74 Billion (2019)|
|Net Income/ Profit||$360 Million (2019)|
Products of LIC
LIC’s Insurance Plans are insurance that speaks to you individually and recommends the best solutions to meet your needs.
- Life Insurance
- Health Insurance
- Investment Management
- Mutual Fund
Competitors of LIC
- GRUH Finance
- AAVAS Finance
- SBI Life Insurance
- Sahara Life Insurance
LIC Share Price Target 2022
There are 24 life insurance, 34 non-life insurance companies (including Standalone Health Insurance companies) and Reinsurance company in the Indian insurance market (IRDAI Annual Report 2018-19). In the life insurance space, around 69.00% of the market share is held by the LIC which is wholly owned by the Government and has an extensive distribution network and a trusted brand image.
As of F.Y 2018, India is the 11th largest insurance market in the world and has bagged the 10th position in the life insurance segment in terms of the total premium (IRDAI Annual Report 2018-19).
In India, Life insurance density had gone up from USD 9.1 in 2001 to USD 55.7 in 2010; but saw a downtrend in the years after. After plummeting to 41 in 2013, it again recovered and reached the level of USD 55 in 2018. The life insurance penetration has also gone through the same course and increased to 4.60% in 2009 from 2.15% in 2001, and again faltered. It was measured as 2.74% in 2018 (IRDAI Annual Report 2018-19).
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Strengths of LIC
The unique skills of a company that gives it an edge in gaining more market share, attracting more customers, and maximizing profits are known as its strengths. The following are LIC’s strengths:
- Brand Image: In India, the LIC brand has a good reputation. Yogakshemam Mahamyaham, which translates to “welfare for all,” is the company’s slogan. In 2015, the Economic Times Brand Equity Survey named LIC as India’s most trustworthy insurance provider.
- Asset Base: LIC has over USD 150 billion in assets and is India’s largest investor, giving it significant clout in the Indian financial system.
- Agent Network: LIC has a nationwide agent network of 1,337,064 individual agents, 242 corporate agents, 89 referral agents, 98 brokers, and 42 banks, reaching every corner of India.
- International Subsidiary: LIC has a robust subsidiary network that includes LIC Housing Finance Limited, LIC Cards Services Limited, LIC Nomura Mutual Fund, LIC (Nepal) Ltd, LIC (Lanka) Ltd, LIC (International), BSC, and LIC (Nepal) Ltd. (C).
- Various Services: A customer portal in LIC offers various services to customers who can save time and even buy policies online. Customers can now calculate premium, bonus amount, tax calculation, check the status of their policy, calculate loan amount, download form and pay premium online.
- Brand Reputation: The company has built a strong brand reputation that offers a wide variety, transparency, and convenience to its customers.
- Financial Position: LIC’s high renewal rates provide a clear view of future business and offer excellent profitability. It uses a capital-efficient model with low operating costs.
Weakness of LIC
- Organizational Culture: Because LIC is so closely associated with the government, it has a very loose and leisurely work culture. This is a flaw in comparison to current private insurance firms that are strategic thinkers.
- Poor Advertising Strategy: LIC spends less money on advertising than commercial suppliers, which is evident in the quality of the ads it distributes.
- Too Many Restrictions: Because LIC is a government-owned firm, it is subject to a slew of regulations and is constantly beset by bureaucratic hurdles. This slows down decision-making at LIC.
- Overworked: LIC employs a significant number of people, the majority of whom operate from their own offices. The organization frequently faces difficulties in paying workers’ salaries and resolving concerns.
- Often Slow to Respond to Changing Needs: A lot of customers nowadays doubt their policies & insurances and LIC has been unable to serve them on time.
- Privacy issues: A lot of customers nowadays have privacy issues regarding whether to invest in such policies or not so this can be one of the weaknesses that LIC could face.
Opportunities for LIC
- Cyber Threats as Opportunities: There have been several instances of data breaches and security system breaches. Insurance coverage against cybersecurity threats might be a tremendous opportunity at a time when cybersecurity is a threat.
- Online Services: People have started looking more at possibilities like insurance as a result of the expansion of internet services, and knowledge of it is now higher than it was previously. This gives labor-intensive suppliers like LIC the option to save money by substituting people with technology.
- Shift From Protection To Prevention: There is a general trend toward risk prevention rather than risk mitigation, which indicates that insurance companies should concentrate on risk prevention rather than risk mitigation.
- Lower Cost: LIC shifted to digital distribution as the market changed and competition increased. These changes have resulted in a significant decrease in the average cost of distribution services.
Threats to LIC
- Competition: Since insurance was privatized, LIC has lost its lustre and now confronts intense competition from private insurance businesses that have given the industry a new lease on life.
- Changes in Government: Because fiscal and monetary policies vary with each new government, tactics must be altered correspondingly. This results in a slew of issues.
- Technology: Nowadays, most financial service providers use online banking and financial brokerage services to make technology an intrinsic element of their business. The LIC, on the other hand, still has a lot of catching up to do in terms of technology.
- New Comers: Several new players have entered the market and are gaining market share by taking market share from existing companies. LIC is at risk because these new entrants could steal its customers.
By considering all the above-mentioned factors and the leadership of LIC in the insurance industry, LIC share price target for 2022 is Rs 860.
|LIC share price target 2022|
|First Target – Rs 860|
|Second Target – Rs 868|
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LIC Share Price Target 2023
India accounts for merely 2.61% of the world’s total insurance premiums, indicating that the potential of growth is immense for the insurance sector (IRDAI Annual Report 2018-19). An under-penetrated market and factors such as young population, growing working-age group, rising income levels, increasing awareness about insurance, and expected increase in dependency ratio are expected to bring growth in the sector.
Although the Indian insurance industry has grown significantly over the last decade, there are opportunities for further growth.
Though the universally accepted index of penetration is the premium to GDP ratio which can be seen to have fallen after 2009, the numbers of insured have gone up significantly; thanks to the Government’s sustained efforts at financial inclusion which have resulted in nearly 40 Crore Jan Dhan accounts, holders of which enjoy some form of insurance cover.
There are over 6 Crore Pradhan Mantri Jeevan Jyoti Bima Yojana beneficiaries and 16 Crore Pradhan Mantri Suraksha Bima Yojana beneficiaries (however these figures are not necessarily mutually exclusive). This implies a significant percentage of those covered under some form of insurance if we take one estimate which puts the insurable population at around 75 Crore.
Net financial assets of Indian households have gathered pace in 2019-20 touching the levels reached in 2017-18, i.e; 7.7% of the GDP. Households allocate their financial assets and liabilities among various instruments involving varying degrees of liquidity and risk.
As of March 2020, around 66% of this was in currency and deposits, while 23.2% was Life Insurance Fund (RBI Bulletin June 2020). The increase in net financial assets is an opportunity, while a higher portion of financial assets in deposits and currency is a challenge as well as an opportunity for Insurers.
Insurers are eying a large portion of these savings in financial assets. Mutual funds which are always competing with insurance have seen outflows due to the recent liquidity crisis faced by the sector and general risk aversion due to the Covid-related uncertainties. The Insurance industry can be cautiously optimistic, given a likely move towards risk aversion and greater financial awareness. By considering all the opportunities insurance companies have to grow the business in future, LIC share price target for 2023 is Rs 940.
|LIC share price target 2023|
|First Target – Rs 940|
|Second Target – Rs 952|
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LIC Share Price Target 2024
Increased inclination towards digitization in every sphere of life is bringing in innovative disruption. Life insurance industry is also experiencing the same. The digital literacy of consumers is on the rise. Insurtech which was a global phenomenon is quickly becoming a part of the Indian insurance industry’s overall innovation ecosystem. There are ample development opportunities through the use of Insurtech and also challenges in terms of the need for continuous updation and the issues around data privacy and data curation.
As per a Swiss-Re Report, incorporating new data sources can reduce the time taken in risk assessment and also improve risk selection. As such, the challenge is to do data curation and use its power for the growth of business making the pricing and process more agile.
The recent disruption brought in by the Covid pandemic has immensely affected the behavior of both the insurance user and the provider. This has and is further expected to, accelerate the move towards digitization in every possible aspect of the value chain.
Today’s customers have set new standards of convenience, ease of use, and value. The traditional insurance business model which was hitherto proving to be resilient is now beginning to be impacted by digital awareness and options available in the market.
Insurers can cater to the new age customers mainly with simplified and efficient processes by improving core insurance process efficiency through robotics and automation, enabling more efficient distribution effort through B2B and B2C platforms, and by offering wider products to the diverse population. LIC share price target for 2024 is Rs 1,080.
|LIC share price target 2024|
|First Target – Rs 1,080|
|Second Target – Rs 1,095|
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LIC Share Price Target 2025
Over the years, the Insurance Industry has been continuously introducing an innovative mix of Multi-Product, Multi Channels, and Multi-Segment routes to attract new customers, as well as to increase the insurance penetration in the market. Since liberalization, unit-linked insurance products continue to be sold by most private players with a significant proportion of business coming in from ULIPs.
Traditional policies, like, term-based products and endowment-based products form a relatively small proportion. However, recent years have seen the increased interest of young professionals in Term Assurance Products. This has resulted in intense competition on price amongst Life Insurance Providers. Introducing the products to have the right mix for the business on the one hand and the right mix of market exposure and traditional component on the other is required to increase the profitability and market share.
This along with retaining customer loyalty remains a major challenge to the Insurers in this highly competitive market. Traditional Distribution Channels, like, Insurance Agents have made way for Insurance Marketing Firms, tie-ups along with entities obtaining broking and corporate agency licenses, Point of Sale Persons, as well as Direct modes of Marketing, whereby, the customer gets to purchase his or her policy online, all of which have contributed to greater Insurance sales. To boost penetration and digital infrastructure, the insurers are going for tie-ups by partnering with payment banks and entities providing app-based services, as well. By considering all the above-mentioned factors, LIC share price target for 2025 is Rs 1,250.
|LIC share price target 2025|
|First Target – Rs 1,250|
|Second Target – Rs 1,265|
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LIC Share Price Target 2030
The Total First Year Premium of Life Insurers increased by a remarkable 20.60% to ₹ 2,58,896.49 Crore in the F.Y 2019 20, as compared to the previous fiscal year’s Total First Year Premium of ₹ 2,14,672.86 Crore. In terms of the number of New Policies, a slight growth of 0.69% was registered from ₹ 2.87 Crore in the F.Y 2018-19 to ₹ 2.89 Crore in the F.Y 2019-20.
The Market Share of L.I.C. of India stood at 68.74% in terms of Total First Year Premium and 75.90% in terms of New Business Policies. The Corporation reported an increase of around 39.01% in its Group New Business Premium in the F.Y 2019-20 i.e. over ₹ 1.27 Lakh Crore as compared to over ₹ 0.91 Lakh Crore in the F.Y 2018-19.
Considering the current situation all over the world, the Global Insurance Outlook 2020 has analysed that the Insurers all over the world, in order to stay relevant, must embrace disruptive technologies and big data to develop new business models, new value propositions, and new product offerings necessary to re-ignite growth through distribution, product development, and service strategies.
A strong digital distribution platform is essential for delivering the intuitive and personalized experiences consumers expect, as well as for reducing acquisition costs, increasing efficiency and ultimately selling more products.
LIC offers a wide variety of products, which fulfill the needs of different customer segments of the society. During the year, the Corporation introduced 7 products. These include 4 individual products viz. LIC’s Nivesh Plus, LIC’s SIIP, LIC’s Tech-Term, LIC’s Jeevan Amar, 2 Government sponsored Group schemes viz. Pradhan Mantri Kisan MaanDhan Yojana, Pradhan Mantri Laghu Vyapari Maan-Dhan Yojana, and one Group product viz; LIC’s One Year Renewable Group Micro Term Assurance Plan.
In addition, the Corporation also introduced modified versions of 22 Individual products, 3 Group products and 2 Riders in order to make them compliant with the New Product Regulations, 2019 introduced by IRDAI in the financial year. As at the end of the financial year 2019-20, the Corporation had 27 Individual products, 15 Group Products, and 7 riders
available for sale. By considering all these factors, LIC share price target for 2030 is Rs 2,100.
|LIC share price target 2030|
|First Target – Rs 2,100|
|Second Target – Rs 2,350|
LIC Share Price Target 2022, 2023, 2024, 2025, 2030
|Year||Share Price Target|
|First Target(2022)||Rs 860|
|Second Target||Rs 868|
|First Target(2023)||Rs 940|
|Second Target||Rs 952|
|First Target(2024)||Rs 1,080|
|Second Target||Rs 1,095|
|First Target(2025)||Rs 1250|
|Second Target||Rs 1,265|
|First Target(2030)||Rs 2,100|
|Second Target||Rs 2,350|
Who is the owner of LIC
The government of India is the owner of LIC.
What is the full form of LIC?
Full of LIC is “Life Insurance Corporation”.
Is LIC a government company?
Yes, LIC is a government company and the government of India is the owner of LIC
Is it good to buy LIC shares?
Yes, LIC is good to buy for the long term. LIC is the market leader in the insurance industry and has strong fundamentals and financials.