To be appointed as the actuarial firm for the taking over of public listing of Life Insurance Corporation (LIC), companies like EY Actuarial Services, Milliman Advisors, and Willis Towers Watson actuarial advisory are in a race. The firms have made presentations to the central government and following that financial bids have been opened. It needs to have one week time to complete the process, a senior official has reported. The government has shown interest and had invited to appoint an actuarial firm to determine the embedded value of LIC of India. This helps in entering into the next step of a public listing.
For the dealings of the proposed initial public offer, LIC wants to develop a reporting framework known as Indian Embedded Value (IEV). The government needs to value all the massive real assets to achieve the IEV of the company. The selected firms are needed to work with the appointed actuaries and management of LIC to decide on a method to calculate IEV and also to finalize that it complies with the Indian guidelines under the LIC Act.
The adjusted net worth and value of an in-force business is needed to determine IEV as of March 31, 2021, and for the past period as of March 31, 2020. The value of a new business for FY 2021 includes the sensitivity results for IEV as of March 2021, and analysis of movement in IEV for FY2021 will also have to be provided.
During the liberalized scenario of Indian insurance also LIC was the dominant life insurance. It is moving fast as if, suppressing the previous records. In the current year, LIC has issued over one Crore policy. It has a healthy growth rate of more than 16% in the previous year. During this journey, LIC has conquered many milestones and had unpredicted performance records in the various field of the insurance business. The same motives inspired the pioneers to bring insurance into existence in this country. LIC take the message of protection to enlighten the lamps of security in as many homes as possible and to support the people in providing security to their family members.