The Life Insurance Corporation of India (LIC) has reported an embedded value (EV) of Rs 5,41,492 crore as of March 2022, recording an increase of Rs 1,806 crore from Rs 5,39,686 crore as of September 2021
The embedded value in the case of a life insurance company is the current value of the company's future profits. According to LIC officials, the IEV has been determined at Rs 541,492 crore (Rs 5,414.9 billion) as compared to Rs 95,605 crore (Rs 956 billion) as on March 31, 2021 and Rs 539,686 crore (Rs 5,397 billion) as on September 30, 2021.
Officials said the volatility in the stock market has impacted the LIC's investment market value to the tune of Rs 40,000 crore which, in turn, had its impact on Embedded Value. According to the officials, the Rs 40,000 crore reduction in the market value of its investment was in both equity and debt segments of the market.
The Embedded Value 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. The LIC Board on January 8, 2022 had approved bifurcation of the single fund into separate Participating and Non-Participating funds.
HDFC life Invests in Z3Partners to support Digital Entrepreneurs
