LIC: The 4th most valuable brand in India; should you invest?

Life Insurance Corporation of India (LIC) has been ranked as the fourth most valuable brand in India, according to the Brand Finance India 100 2024 report. With a brand value of $9.8 billion, LIC has achieved significant recognition for its brand strength, earning a brand strength index score of 88 and an AAA brand strength rating. This strong performance is reflected across various brand rankings.

LIC has not only secured the fourth position in terms of brand value but has also been ranked third in the Top 10 Strongest Indian Brands category. Furthermore, it holds the fifth position in the Top 10 Indian Brands overall, underscoring its widespread recognition and influence in the market.

As the leading brand in the insurance sector, LIC has maintained its number one position among insurance brands in India. Earlier this year, the Brand Finance Insurance 100 2024 report also identified LIC as the strongest insurance brand globally, with a steady brand value of $9.8 billion. Following LIC, Cathay Life Insurance was noted as the second strongest brand, experiencing a 9% increase in brand value to $4.9 billion. NRMA Insurance marked a significant 82% rise in brand value, reaching $1.3 billion.

Currently, the Government of India holds a 96.50% stake in LIC, while public holding stands at 3.50%. Last month, the Securities and Exchange Board of India (SEBI) granted LIC an additional three years, until May 16, 2027, to meet the 10% public shareholding requirement.

LIC's journey as a publicly traded company began on May 17, 2022, when it listed on the stock exchanges. The government sold over 22.13 crore shares, representing a 3.5% stake in LIC, through an Initial Public Offering (IPO). The issue, with a price band of ₹902-949 per share, raised ₹20,557 crore.