LIC reports Rs 5.41 lakh crore embedded value in FY22-end

“As on March 31, 2022, the IEV (Indian embedded value) of LIC of India has been determined to be Rs 5,41,492 crore as compared to Rs 95,605 crore on March 31, 2021, and Rs 5,39,686 crore on September 30, 2021. The IEV as of September 30, 2021, was significantly higher than the IEV of March 2021 due to the bifurcation of funds that was carried out by LIC pursuant to changes in the LIC Act during the FY 2021-22,” LIC said in a statement.

The Embedded Value (EV) is a measure of the consolidated value of shareholders’ interest in the life insurance business. It represents the worth of shareholders’ interests in the earnings distributable from the assets allocated to the business after sufficient allowance for the aggregate risks in the business.

The value of LIC’s new business for the year ended March 31, 2022, has been determined to be Rs 7,619 crore compared with Rs 4,167 crore for the year ended March 31, 2021.

LIC said the annualised premium equivalent (APE) for FY22 is at Rs 50,390 crore against Rs 45,588 crore in the previous year.

“Further for the period ended March 31, 2022, the APE of Individual business and Group business was Rs 35,572 crore and Rs 14,818 crore, respectively. Therefore, the individual business accounted for 70.59 per cent of APE and group business accounted for 29.41 per cent of APE. Also, within the individual business, the par business share on the APE basis was 92.88 per cent, while the remaining 7.12 per cent was from the non-par business,” LIC said.

The ROEV (Return on embedded value) for March 21, 2022, stood at 11.9 per cent as compared to 36.9 per cent for March 2021, he said.