Life Insurance Corporation of India (LIC) hit a fresh 52-week low of ₹806 on Tuesday before clawing its way back to close 2% higher at ₹825. Despite the bounce, the stock remains in troubled waters, having shed nearly 30% of its value since August and sitting 32.5% below its all-time high of ₹1,221. The decline is largely tied to LIC’s underwhelming business performance in recent months. December 2024 saw a 13% drop in individual Annualized Premium Equivalent (APE), marking three straight months of contraction after a strong September pre-sales push. Regulatory changes—particularly around surrender norms and commissions—have weighed heavily on LIC’s growth, shrinking its Q3 year-to-date growth to just 4.4%, far behind the private sector’s robust 19.3%. Despite these challenges, LIC remains a titan, holding a 64.4% market share in the group business segment. However, its total premiums fell 41% year-on-year in December, though individual single premiums rose 26%, offering a glimmer of hope. Valuation-wise, LIC appears compelling at 0.6x FY26 estimated embedded value (EV), but analysts remain cautious. Poor new retail business trends, combined with policy risks like the Insurance Amendment Act and the potential end of the Old Tax Regime, are likely to keep the stock in a tight range for now.