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HDFC Life and LIC, side by side on the same measures.
Both are valued on embedded value. Their records, what drives each one's value and the main risks are set out below; the two fair values sit in the full valuations.
- Valuation method: both on embedded value.
- Size: LIC is worth about 3.9 times HDFC Life on the stock market.
- What to watch: value of new business at HDFC Life; embedded value at LIC.
| HDFC Life | LIC | |
|---|---|---|
| Price | ₹592 | ₹399 |
| Market cap | ₹1.29L Cr | ₹5.05L Cr |
| P/E | 62.9 | 8.1 |
| P/B | 7.25 | 2.86 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Embedded value | Embedded value |
01Two businesses
A bank-backed private life insurer
HDFC Life Insurance is one of India's largest private life insurers and a subsidiary of HDFC Bank since the HDFC merger in 2023. It sells savings, protection, annuity and pension policies, much of it through HDFC Bank's branches, along with agents and other partners. It merged Exide Life into itself in 2022.
India's life insurer, still by a distance
Life Insurance Corporation of India is the country's largest life insurer by a wide margin. It was the only life insurer until private companies were allowed in from 2000, and the Government of India still owns the overwhelming majority of its shares after the 2022 IPO.
02The records side by side
Full ten-year tables and charts are on each company's page: HDFC Life · LIC.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- Value of new businessHow much value each year's new policies add is the main driver of growth.
- New-business marginsProtection and non-participating products earn more than plain savings policies.
- Embedded valueThe present value of profits from policies already written, plus net assets — the starting point for valuing any life insurer.
- Value of new businessHow much value each year's new policies add. LIC's margins on new business have been below private peers', and lifting them is the main lever.
05What could go wrong
- RegulationRules on commissions and surrender values can squeeze margins.
- Tax changesChanges to tax breaks on insurance savings can reduce demand.
- Losing share to private insurersPrivate life insurers have taken market share steadily since they were allowed in.
- Government ownershipFurther share sales by the government, or pressure to invest in state priorities, can weigh on the price.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is HDFC Life or LIC better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, HDFC Life trades at 62.9 times earnings and 7.25 times book value, and LIC at 8.1 times earnings and 2.86 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between HDFC Life and LIC?
HDFC Life Insurance is one of India's largest private life insurers and a subsidiary of HDFC Bank since the HDFC merger in 2023. Life Insurance Corporation of India is the country's largest life insurer by a wide margin.
Are HDFC Life and LIC valued the same way?
Yes — both on embedded value, so their workings compare like for like.