Embedded value by July 15, says LIC | India News – Times of India
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MUMBAI: LIC has said that it would take more time to arrive at its embedded value. The corporation has said that it would be in a position to declare this key number by July 15.
Unlike most businesses, the performance of a life insurance company is determined by the future profits that policies sold during the year will bring in. This is a complex calculation as it factors in interest rates and lapsations. LIC has put in place new software to arrive at the embedded value on a quarterly basis.
LIC declared its results on May 31 when it reported a profit of Rs 2,372 crore for the quarter ended March, and Rs 4,043 crore for 2021-22. From the analysts’ standpoint, however, the results were incomplete as LIC did not disclose the new business profit and embedded value. Officials said that calculating these took time as LIC had over 280 products and the profitability for each product has to be calculated separately.
Unlike most businesses, the performance of a life insurance company is determined by the future profits that policies sold during the year will bring in. This is a complex calculation as it factors in interest rates and lapsations. LIC has put in place new software to arrive at the embedded value on a quarterly basis.
LIC declared its results on May 31 when it reported a profit of Rs 2,372 crore for the quarter ended March, and Rs 4,043 crore for 2021-22. From the analysts’ standpoint, however, the results were incomplete as LIC did not disclose the new business profit and embedded value. Officials said that calculating these took time as LIC had over 280 products and the profitability for each product has to be calculated separately.
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