Multiple competitive moats can drive LIC 47% higher: ICICI Securities

“Increasing non-participating mix (currently ~5% in APE mix as of Q1FY23) and change in surplus distribution policy are significant growth drivers of the value of the new business (VNB) and in turn embedded value (EV). This, against the strong growth outlook of the Indian life insurance (especially through the lens of sum assured), makes LIC a strong investment proposition considering it is currently trading at 0.73x FY22 price to EV,” said the brokerage.