LIC shares fall 4% as Q2 VNB misses estimates; APE growth remains weak

Life Insurance Corporation of India (LICI) shares dropped over 4% in early trade after the insurer reported a quarterly performance that missed analyst expectations. The company’s Value of New Business (VNB) for the second quarter came in lower than what most market participants had anticipated. This metric is a key indicator of the profitability of new business written during the period.

For investors, this result signals that the insurer’s core business is growing at a slower pace than previously projected. The fact that APE (Annual Premium Equivalent) growth remains weak adds to the concern, as it suggests that the company is struggling to attract new policyholders or retain existing ones. This performance is crucial for LIC because it is the primary driver of its future profitability and market valuation.

Moving forward, investors will closely watch the company’s guidance for the rest of the fiscal year. The focus will be on whether LIC can improve its sales momentum in the coming quarters and stabilize its APE growth. Any signs of a turnaround in new business sales will be critical for restoring investor confidence in the stock.