LIC's embedded value pegged at Rs 5.41 lakh crore as of March 2022

Life Insurance Corporation (LIC) of India said its Indian embedded value (IEV) has been pegged at Rs 5.41 lakh crore, as of March 2022.

"As on March 31, 2022, the IEV of LIC of India has been determined to be Rs 5,41,492 crore as compared to Rs 95,605 crore as on March 31, 2021 and Rs 5,39,686 crore on September 30, 2021," the state-run insurer said in a press release attached with a regulatory filing.

The IEV as of September 30, 2021 was significantly higher than the IEV of March 31, 2021 due to the bifurcation of fund that was carried out by LIC pursuant to changes in the LIC Act during financial year 2021-22, it added.

The value of new business (VNB) for year ended March 31, 2022 has been determined as Rs 7,619 crore, as compared to Rs 4,167 crore in the year-ago period, LIC noted.

The VNB for the six-month period ended September 30, 2021 was Rs 1,583 crore, it further said.

"The VNB margin, for the year ended March 31, 2022, is 15.1 percent as compared to VNB margin of 9.9 percent for the year ended March 31, 2021," the release added.

The ROEV or return on embedded value for March 2022 is 11.9 percent as compared to 36.9 percent for March 2021, LIC said, while clarifying that the calculations have taken into account the bifurcation impact of the split of single life fund into par and non-par fund during FY 2021-22.

LIC's annualised premium equivalent (APE) for FY22 was determined as Rs 50,390 crore, the release stated. This is higher as compared to the APE FY21, which was Rs 45,588 crore, it added.

The APE of individual business and group business was Rs 35,572 crore and Rs 14,818 crore, respectively, in FY22, LIC said.

"Therefore, the individual business accounted for 70.59 percent of APE and Group business accounted for 29.41 percent of APE. Also, within the individual business, the par business share on APE basis was 92.88 percent, while the remaining 7.12 percent was from the non-par business," it further noted.

LIC's shares closed at Rs 712.30 a piece at the NSE and Rs 712.15 at the BSE, down by 0.91 percent and 0.95 percent, respectively, as against the previous day's close.