LIC Share Price: 10.3% CAGR in 3 Years as the Newly Listed Life Insurance Giant Edges Past SBI Life

LIC previous close Rs 408. 3-year CAGR 10.3%. Up 1.3x since 3 Nov 2023. P/E 8.63 vs industry 10.03. ROE 32.53%.

The LIC share price tracks one of the more closely watched large caps to list in recent years. Life Insurance Corporation of India (LIC) came to the market in May 2022 and, over the last three years, its stock has compounded slightly faster than SBI Life Insurance, the leading private sector life insurer.

This article calculates the three-year CAGR for both, then compares market cap, valuation, return on equity and debt. All prices are adjusted for corporate actions so the comparison is on equal terms.

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How Much Has the LIC Share Price Returned in 3 Years?

The LIC stock closed at Rs 304.02 on 3 November 2023 and at Rs 408.00 on 4 November 2026. Rs 1 lakh invested three years ago would have grown to about Rs 1.34 lakh, which is a CAGR of 10.3%. This is a price return and leaves out dividends.

CAGR condenses a bumpy three-year ride into one yearly number, which is why it is the fairest way to compare companies of different sizes. A stock such as LIC can look spectacular on a chart and still have earned a modest yearly return, so the compounded figure keeps the comparison honest.

The LIC share price is shaped by the size of the franchise, the pace of new business premium and the value investors place on the large pool of policy assets that LIC manages.

LIC vs SBI Life Insurance: 3-Year CAGR Compared

The table ranks the companies by three-year CAGR. Prices on 3 November 2023 are adjusted for splits and bonuses, and the latest figures are the previous close on 4 November 2026.

Company	Close on 3 Nov 2023	Previous close (4 Nov 2026)	Price multiple	3-year CAGR
Life Insurance Corporation of India	Rs 304.02	Rs 408.00	1.3x	10.3%
SBI Life Insurance	Rs 1,329.35	Rs 1,710.20	1.3x	8.8%

The LIC stock leads the pair at 10.3%, ahead of SBI Life Insurance at 8.8%. LIC edged ahead of SBI Life on three-year CAGR. The two are very different in scale, since LIC is far larger by market cap and its P/E is a fraction of the private insurer's.

Look at the LIC share price alongside the peers as a snapshot of the last three years. It describes what happened, and valuation and earnings will decide what happens next.

Valuation and Quality Compared

Company	Market cap	P/E	Industry P/E	ROE	Debt to equity
Life Insurance Corporation of India	Rs 5,18,017 crore	8.63	10.03	32.53%	0.00
SBI Life Insurance	Rs 1,70,780 crore	64.30	13.39	12.93%	0.00

By market cap, Life Insurance Corporation of India is the largest of the group at Rs 5,18,017 crore, which gives it the scale advantage over SBI Life Insurance. On earnings, LIC shares trade at a P/E of 8.63 against an industry P/E of 10.03, a discount of about 14% to the sector, which leaves room if earnings keep growing. Peer multiples are SBI Life Insurance at 64.30.

Return on equity is 32.53% for the LIC stock, which ranks first among the two, and debt to equity stands at 0.00. Trailing EPS is Rs 47.47. Insurers are valued on earnings, embedded value and new business margins, so a low P/E alone does not describe the full picture.

What Is Driving the LIC Stock?

LIC is India's largest life insurer, with a distribution network of agents that reaches households across the country. It sells traditional savings and protection plans, pension products and group business, and manages a very large investment portfolio.

A large book of policies gives the company a steady stream of renewal premium and investment income. Growth in new business, especially in higher margin non-participating and protection products, is the lever that investors follow.

Followers of the LIC share price generally track new business premium, the value of new business margin, persistency and the investment yield on the portfolio.

How the Established Players Stack Up

SBI Life Insurance is the private sector life insurer promoted by State Bank of India, with a strong bancassurance channel. It compounded at 8.8% a year on a market cap of Rs 1,70,780 crore, with an ROE of 12.93%.

What Should Investors Track Next?

Three things are worth watching on the LIC share price. First, growth in new business premium and the share of higher margin products. Second, persistency, which shows how many policies stay in force. Third, investment returns on its large portfolio.

LIC trades at a P/E of 8.63 against an industry P/E of 10.03. A three-year CAGR describes the past, and insurers are sensitive to markets and regulation.

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How to Compare Insurance Stocks Yourself

You can repeat this exercise for any pair of stocks, including the LIC stock against its peers. Note the adjusted closing price on the base date, take the latest close, divide one by the other, raise the result to the power of one third and subtract one. Then place the CAGR next to market cap, P/E against the industry P/E, ROE and debt to equity. Benchmark the result against the Nifty 50 as well, so you know whether the stock beat the broader market.

A stock that scores well on growth but weakly on quality, or the reverse, deserves closer study before it enters a portfolio. When tracking the LIC share price, the same four checks give a more complete picture than price alone.

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A Large Insurer at a Modest Multiple

The LIC share price compounded at 10.3% a year over three years, ahead of SBI Life at 8.8%. LIC also earns an ROE of 32.53% and trades at a P/E of 8.63.

SBI Life offers a private sector growth profile with a higher multiple, while LIC offers scale and a lower valuation. Weigh each against your own view of the sector.

Frequently Asked Questions

What is the LIC share price today?

Ans. Life Insurance Corporation of India closed at Rs 408 on 4 November 2026, according to NSE data. It has a market cap of Rs 5,18,017 crore and a P/E of 8.63. Check live quotes before acting, as prices change every trading day.

What is the 3-year CAGR of the LIC stock?

Ans. Life Insurance Corporation of India delivered a price CAGR of 10.3% over three years, moving from Rs 304.02 on 3 November 2023 to Rs 408.00 on 4 November 2026. The figure excludes dividends and uses adjusted closing prices.

Is LIC better than SBI Life?

Ans. The LIC stock delivered a three-year CAGR of 10.3% against 8.8% for SBI Life. LIC trades at a lower P/E of 8.63 against 64.30 and earns a higher ROE of 32.53% against 12.93%. Insurers should be compared on embedded value and margins as well.

What does Life Insurance Corporation of India do?

Ans. Life Insurance Corporation of India (LIC) is the country's largest life insurer. It sells savings, protection and pension plans through a large agent network and manages one of the biggest investment portfolios in India.

Is the LIC stock debt free?

Ans. The debt to equity ratio of the LIC stock is 0.00 and its return on equity is 32.53%. Always check the latest balance sheet for current figures, as debt levels change with expansion plans.

Is LIC expensive compared with the industry?

Ans. LIC trades at a P/E of 8.63 against an industry P/E of 10.03. A higher multiple reflects expectations of faster growth, which the company must deliver through earnings.

Which insurance stock gave the highest return in 3 years?

Ans. Among the companies compared here, Life Insurance Corporation of India delivered the highest three-year CAGR at 10.3%, followed by SBI Life Insurance at 8.8%. Past returns do not guarantee future performance.

How do I calculate CAGR for a stock?

Ans. Divide the latest price by the starting price, raise the result to the power of one divided by the number of years, and subtract one. Multiply by 100 for a percentage. Use split and bonus adjusted prices for accurate results.