By July 15, LIC is likely to disclose embedded value

Life Insurance Corporation, a titan of the insurance industry, announced on Wednesday that the process of calculating its embedded value as of March 2022 is underway and should be finished by July 15.

Life Insurance Corporation, a titan of the insurance industry, announced on Wednesday that the process of calculating its embedded value as of March 2022 is underway and should be finished by July 15.

It has been notified that it may take some additional time to complete the exercise to determine the Indian Embedded Value (IEV) as of March 31, 2022, according to a statement from LIC.

“Once completed and after requisite approvals, the required public disclosures of the same, will be made in this regard, by LIC of India. As of now, we expect the required public disclosures, to be made by July 15,” it said.

The consolidated value of shareholders’ interests in the life insurance industry is measured by the Embedded Value (EV).

After making an appropriate provision for the total business risks, it indicates the value of the shareholders’ interests in the profits that can be distributed from the assets allotted to the company.

International actuarial company Milliman Advisors estimated the inherent value of LIC to be at ₹5.4 lakh crore as of September 30, 2021.

Through the largest IPO ever last month, the government raised around ₹20,500 crore by diluting its 3.5 percent ownership in the insurer.

Following the listing, LIC reported an 18% decrease in net profit for the three months ended in March 2022 compared to the same period last year, coming in at ₹2,371.55 crore on a standalone basis.

The earnings after tax for the fourth quarter that ended in March 2022 decreased 17% on a consolidated basis from the same period a year prior, to ₹2,409 crore.