LIC shares hit 52-week high despite fall in premium

The Life Insurance Corporation of India (LIC) shares on Thursday hit a 52-week high of close to Rs 800 in intra-day trades. The stock settled at Rs 785.50, up 5.34%, on the BSE, after gaining as much as 7.27% to Rs 799.90. The stock had gained 7.2% on Monday and 5% on Wednesday.

It is, however, still trading at 17.23% below its offer price of Rs 949. The state-owned insurer made its debut on the bourses in May 2022 at Rs 867.20, a discount on its offer price.

“LIC has lost some market share in the insurance business but remains one of the biggest investment companies. When the bull run started after the pandemic, holding and investment companies did not participate much but have started doing so in the last three months. The movement in Adani stocks was a catalyst, and investment firms are now riding the bull wave,” said independent market analyst Ambareesh Baliga.

As of Thursday, it commanded a market capitalisation of Rs 4.96 trillion. In intra-day trade, it had briefly crossed Rs 5 trillion for the first time since June last year.

Data from the Life Insurance Council showed that the total premium collected by life insurers was Rs 26,495 crore in November, down 25% year-on-year (YoY).