LIC Hits ₹951 Intraday Low; Resistance at ₹1,000 Holds Firm

Life Insurance Corporation of India (LIC) shares tumbled by 3.5% during Tuesday’s trading session, reflecting investor concerns as the life insurer reported a challenging performance for November. Premiums for the month plunged by 27% year-over-year, signaling a significant slowdown in growth.

Despite LIC posting a 16% rise in premium collections over the first eight months of FY25, its total and retail Annual Premium Equivalent (APE) for November witnessed declines of 19% and 12%, respectively.

LIC’s stock opened strong at ₹982.95 per share but quickly faced selling pressure, dropping to an intraday low of ₹951. Analysts believe technical resistance at the ₹1,000 mark, coinciding with the 200-day simple moving average (SMA), remains a major hurdle.

Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, commented, “The ₹1,000 level aligned with the 200 SMA is a key resistance point. Unless breached, the upside potential remains capped. On the downside, ₹940 acts as strong support.”

While LIC’s performance faltered, private insurers capitalized on the market dynamics, showcasing robust growth. Nuvama Institutional Equities highlighted a 15.4% year-over-year rise in individual APE among private players in FY25TD, now at 21.2%. LIC, by contrast, saw its individual APE shrink by 12.4% YoY, with a modest FY25TD growth of 7.3%.

Private insurers, including ICICI Prudential Life Insurance and HDFC Life Insurance, expanded their market share significantly, benefiting from LIC’s subdued performance. The individual APE market share of private insurers surged to 68.9% for FY25TD, underscoring their dominance. Additionally, private players achieved a five-year compound annual growth rate (CAGR) of 14.1% in individual APE, reflecting their consistent growth trajectory.

LIC’s struggles juxtaposed against the private sector’s gains reveal a shifting landscape in India’s life insurance industry.