Life Insurance Corporation (LIC) shares have surged nearly 79%, from Rs 620 on July 18, 2023, to Rs 1,109.15 on Tuesday, according to stock exchange data. This performance has outshined competitors like HDFC Life and ICICI Prudential Life.
LIC’s strategic investments in India’s growth-centric infrastructure sector have proven successful, while the private sector focused on tech, consumer, and BFSI companies. HDFC Life and Kotak Mahindra Bank, with minimal infrastructure exposure, lagged behind.
Capital market analysts emphasize that insurance companies generate significant profits by investing premiums in assets. Global giants like Berkshire Hathaway benefit from higher infrastructure investments, a strategy yet to be fully realized by Indian insurers. Analysts recommend a stronger focus on infrastructure for long-term stability and growth.
(With inputs from agencies.)