2 Insurance Firms with HIGHEST Profits in FY23!

  • Stock Market Analysis
  • Editors Pick

Despite being the 5th largest economy in the world, insurance penetration in India is still extremely low. As per data by Statista, life insurance in the country stood at around 3% in FY22, and non-life insurance was much lower at about 1%. With a population exceeding 140 crores, there is no doubt that this space is going to be one of the best performers in the long run.

If you find it tricky to select some of the best insurance firms in India, here is a list of 2 that have clocked the highest net profits in FY23.

Life Insurance Corporation of India Limited

Life Insurance Corporation Of India (NS: LIFI ) is the largest insurance firm in the country, with a market capitalization of INR 3,76,432 crores. In FY23, the company secured a net profit of INR 35,996.64 crores, over a revenue of INR 7,92,547.89 crores. If you want to understand the magnitude of this profit figure w.r.t. the peers, look at the next best performer :)

Due to a noticeable underperformance since the listing on the Indian bourses and an aggressive jump in net profits since then, the P/E ratio has dropped to only 10.19. The current prices are so low, that even on the technical front, the upside potential is high. With a market share of over 50%, this stock is a no-brainer if someone is looking to take exposure in this space. InvestingPro has calculated the fair value of the stock for you, which is around INR 728, giving a decent upside potential of 21%.

General Insurance Corporation of India Limited

General Insurance Corporation of India (NS: GENA ) is a mid-cap insurance firm with a market capitalization of INR 32,359 crores. The company’s FY23 revenue dipped 4% YoY to INR 47,750.47 crores, however, the net income jumped by a massive 189.4% to INR 6,907.31 crores in the same period. This is the second-highest profit in the insurance space (in FY23), which is just 19.1% of LIC’s gigantic profit.

FIIs are also ramping up their stake, as their interest has climbed from 0.45% in March 2022 to 0.67% in March 2023. The best part about this counter is its valuations It is trading at a P/E ratio of a mere 4.68, despite a 48% rally in the last 12 months, making it currently the ‘cheapest’ insurance stock on the NSE. As per InvestingPro models, the fair value of the stock is INR 246, projecting a good 32% upside from the CMP.

Read More: Reversal: An Inverse H&S At 52-Week Low!

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