As of Tuesday, February 24, 2026, the Life Insurance Corporation of India (LIC) is navigating a significant valuation setback. Reports indicate that the insurer’s investment portfolio has declined by approximately ₹42,500 crore over the past two months.
This erosion is not a direct loss of the company’s cash reserves, but rather a reflection of the volatility in the broader Indian equity markets, specifically within the Information Technology (IT) sector.
The Root Cause: The IT Sector Meltdown
The primary driver behind this ₹42,500 crore decline is LIC’s massive exposure to Indian IT heavyweights.
- The “Claude Code” Effect: The recent release of AI tools like Claude Code (Anthropic) and the subsequent crash in global legacy-system providers like IBM has triggered a “bear market” in Indian IT.
- Portfolio Concentration: As one of India’s largest institutional investors, LIC holds significant stakes in TCS, Infosys, and HCL Tech. As the Nifty IT index crashed 20% so far in February, the mark-to-market value of LIC’s holdings plummeted in tandem.
- Intraday Pressure: Just today (Feb 24), the Nifty IT index fell another 5%, adding further downward pressure on LIC’s portfolio valuation.
LIC’s Own Stock Performance
While the portfolio lost ₹42,500 crore, LIC’s own market capitalization has also been under pressure as investors react to these declining asset values.
| Period | LIC Stock Performance (Approx.) |
| Past 1 Month | -6.09% |
| Past 2 Months | -11.49% |
| Current Market Cap | ₹5.52 Lakh Crore (down from ~₹6 Lakh Crore in Dec 2025) |
Key Counter-Points: Financial Health
Despite the market value erosion, LIC’s operational fundamentals remain strong:
- Robust Profits: For the nine months ending December 2025, LIC reported a 16.7% growth in Net Profit, reaching ₹33,998 crore.
- Market Leadership: LIC continues to dominate the Indian life insurance market with a 57.07% share in First Year Premium Income.
- Solvency: Its solvency ratio improved to 2.19 as of December 2025 (up from 2.02), indicating a very strong buffer against market shocks.
Ongoing Investor Engagement
LIC is currently addressing these valuation concerns directly with the global investment community:
- Feb 23, 2026: Participated in the Chasing Growth 2026 conference by Kotak Institutional Equities.
- Feb 24, 2026 (Today): Engaging with analysts at the 17th Enterprising India Global Investors’ Conference organized by IIFL in Mumbai.
Analyst View: MarketsMOJO currently maintains a “Sell” rating on LIC (as of Jan 2026), citing deteriorated technical momentum, though they acknowledge that the stock’s valuation remains “very attractive” for long-term value seekers.
