Milliman Advisors was entrusted the job to derermine value
BBN Bureau
MUMBAI/July 14-2022: The Indian embedded value (IEV) of LIC of India has been determined to be Rs5.42 lakh crore (Rs5.42 trillion) as on March 31, 2022, compared with Rs95,605 crore (Rs956 billion) as on March 31, 2021.
The IEV as on September 30, 2021 was Rs5.40 lakh crore (Rs5.4 trillion), according to an official statement released by the LIC of India on Thursday.
LIC had engaged Milliman Advisors LLP for determining the IEV of the LIC of India as on March 31, 2022. On Thursday (July 14), the Board of LIC, in its meeting, adopted the IEV Report of Milliman Advisors pertaining to the IEV of LIC of India as on March 31, 2022.
The IEV as of September 30, 2021 was significantly higher than the IEV of March 2021 due to the bifurcation of fund that was carried out by LIC pursuant to changes in the LIC Act during the FY 2021-22.
In its meeting held on January 8, 2022 LIC board had approved bifurcation of the single fund into separate – Par and Non-Par funds – and the effect of such bifurcation has reflected in the financials as on March 31, 2022, the LIC official note added.
Value of new business (VNB)
The Value of New Business (VNB) for the year ended March 31, 2022 has been determined to be Rs7,619 crore (Rs76.19 billion) as compared with Rs4,167 crore (Rs41.67 billion) for the year ended March 31, 2021.
Also, the VNB for the six-month period ended September 30, 2021 was Rs1,583 crore (Rs15.83 billion). The VNB margin, for the year ended March 31, 2022 is 15.1 per cent as compared with VNB margin of 9.9 per cent for the year ended March 31, 2021.
The Annualised Premium Equivalent (APE) for the year ended March 31, 2022 is Rs50,390 crore (Rs503.90 billionn). The APE for year ended March 31, 2021 was Rs45,588 crore (Rs455.88 billion) and the APE considered for arriving at VNB for the period ended March 31, 2021 was Rs 42,170 crore (Rs 421.70 billion), the reported added.
