The insurer that listed on the bourses this year said that its Indian embedded value was ₹5.42 lakh crore as of end-March, nearly six times of what it was a year back. The return on embedded value was 11.9% as compared to 36.9% in the year-ago per...
By ET Bureau | Updated:
Agencies
LIC's annualised premium equivalent (APE) for FY22 was ₹50,390 crore against ₹45,588 crore earlier. The APE considered for arriving at VNB for FY22 was ₹42,170 crore.
Kolkata: Life Insurance Corporation of India (LIC) on Thursday reported a near 83% jump in value of new business (VNB) for FY22 and said its Indian embedded value has been pegged at ₹5.42 lakh crore.
The VNB was seen at ₹7,619 crore as compared with ₹4,167 crore in the preceding fiscal. The VNB margin for FY22 was 15.1% as compared with 9.9% earlier.
The insurer that listed on the bourses this year said that its Indian embedded value was ₹5.42 lakh crore as of end-March, nearly six times of what it was a year back. The return on embedded value was 11.9% as compared to 36.9% in the year-ago period. The value was disclosed late while the company said it will be announced with quarterly results henceforth.
India's largest insurer said the embedded value was significantly higher due to the bifurcation of single fund into separate par and non-par funds that was carried out by it following the changes in the LIC Act during FY22.
The embedded value, a measure of the consolidated value of shareholders' interest in the life insurance business, was ₹95,605 crore as on March 31, 2021 and was ₹5.40 lakh crore as on September 30, 2021.
This is according to Milliman Advisors LLP, the firm engaged by LIC for this task. The LIC board on Thursday adopted the valuation report.
ADVERTISEMENT
LIC officials said that a 10% fall in share price leads to 6.5% fall in embedded value. Its stock closed Thursday 0.95% lower at ₹712.15 on the BSE. LIC shares listed at ₹865 on the BSE, at an 8.62% discount to the initial public offer price of ₹949 per share.
LIC's annualised premium equivalent (APE) for FY22 was ₹50,390 crore against ₹45,588 crore earlier. The APE considered for arriving at VNB for FY22 was ₹42,170 crore.
The APE of individual business and group business was ₹35,572 crore and ₹14,818 crore respectively. The individual business accounted for 70.59% of APE. Also, within the individual business, the par business share on APE basis was 92.88% with the balance 7.12% being from the non-par business, the insurer said. LIC earned 17.4% lower net profit at ₹2,409 crore for the March quarter.
