‘LIC’s embedded value set at over ₹5 trillion’
The Hindu
Metric will establish market valuation
State-run Life Insurance Corporation of India’s (LIC) embedded value has been finalised at more than ₹5 trillion ($66.82 billion), a government official who is overseeing what is expected to be the country’s largest IPO said on Thursday.
Investors are waiting for the Centre to indicate LIC’s embedded value — a measure of future cash flows in life insurance companies and the key financial gauge for insurers — when it releases the initial public offering (IPO) draft prospectus, expected in a matter of days.
While there has been speculation about the number in Indian media — from as low as $53 billion to as high as $150 billion — This is the first time the government, which owns 100% of LIC,has commented on the matter.