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is all set to announce its maiden results on Monday. All eyes would be on the growth outlook and change in product mix. Investors may look at the persistency ratio, which is likely to remain positive. Besides, they would also track distribution mix and cost ratio.
ET NOW poll sees growth in new business premium at 6-7 per cent in FY22.
The value of new business (VNB) margin stood at 9.3 per cent in FY21. ET NOW poll sees an 11 per cent rise on a YoY basis.
In a filing to BSE, LIC had last week said it will also consider a dividend, if any, today. LIC shareholders would be keenly tracking the decision.
The Rs 20,557 crore IPO, which ran from May 4 to May 9, received 2.95 times subscription. The scrip debuted on May 17 at about a 9 per cent discount to the issue price. On Friday, the scrip stood at Rs 821.55, down 13.4 per cent from the issue price of Rs 949.
Brokerage Macquarie while initiating coverage on the stock on May 17 said the product mix for LIC in FY22 over FY21 had remained the same, with group business/single premium business dominating the overall product mix.
The share of non-par has been just around 5-6 per cent in overall APE, and it is essential that LIC scales up this business further to drive margins and VNB growth, the brokerage had said.
The brokerage said it has not seen any pivot by LIC towards selling high-margin products as of now. The feedback from conversations with some agents of LIC as well as some competitors reveal that nothing much has changed on the ground with respect to LIC’s approach towards selling more of these high-margin non-par products.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
ET NOW poll sees growth in new business premium at 6-7 per cent in FY22.
The value of new business (VNB) margin stood at 9.3 per cent in FY21. ET NOW poll sees an 11 per cent rise on a YoY basis.
In a filing to BSE, LIC had last week said it will also consider a dividend, if any, today. LIC shareholders would be keenly tracking the decision.
The Rs 20,557 crore IPO, which ran from May 4 to May 9, received 2.95 times subscription. The scrip debuted on May 17 at about a 9 per cent discount to the issue price. On Friday, the scrip stood at Rs 821.55, down 13.4 per cent from the issue price of Rs 949.
Brokerage Macquarie while initiating coverage on the stock on May 17 said the product mix for LIC in FY22 over FY21 had remained the same, with group business/single premium business dominating the overall product mix.
The share of non-par has been just around 5-6 per cent in overall APE, and it is essential that LIC scales up this business further to drive margins and VNB growth, the brokerage had said.
The brokerage said it has not seen any pivot by LIC towards selling high-margin products as of now. The feedback from conversations with some agents of LIC as well as some competitors reveal that nothing much has changed on the ground with respect to LIC’s approach towards selling more of these high-margin non-par products.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
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