COMPARATIVE ANALYSIS OF FINANCIAL PERFORMANCE AMONG SELECTED INSURANCE COMPANIES IN INDIA

Insurance companies are a cornerstone of financial inclusion and economic resilience in India. They provide a financial safety net for individuals, families, and businesses by offering protection against life, health, property, and income risks. The Indian insurance sector plays a vital role in mobilizing savings, providing financial protection, and contributing to economic development. In recent years, financial performance has become a key indicator of the operational efficiency and strategic effectiveness of insurance firms. This study undertakes a comparative analysis of the financial performance of two major insurance companies in India: HDFC Life Insurance Company Ltd, representing the private sector, and Life Insurance Corporation of India Ltd (LIC), representing the public sector. The analysis is based on key financial ratios including Current Ratio, Net Profit Margin, and Return on Assets over a five-year period from 2019-20 to 2023-24. The study aims to evaluate the liquidity, profitability, and asset efficiency of the selected companies and compare their financial standing. The findings reveal that there is a significant difference in the current ratio between the two companies, suggesting varied liquidity management practices, while there is no significant difference in their net profit margin and return on assets, indicating comparable profitability and operational efficiency. The study provides valuable insights for investors, policymakers, and financial analysts regarding the performance and financial health of insurance firms in India.