Now that #LIC IPO valuation is in public domain , lot of question would be asked what is #EmbeddedValue, her is some clarity
Definition: Embedded value is the sum of the net asset value and present value of future profits of a life insurance company.
#LICIPO #EV #IPOAlert
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Definition: Embedded value is the sum of the net asset value and present value of future profits of a life insurance company.
#LICIPO #EV #IPOAlert
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Description: This measure considers future profits from existing business only, and ignores the possibility of introduction of new policies and hence profits from those are not taken into account.
Source : m.economictimes.com/definition/emb…
Source : m.economictimes.com/definition/emb…
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#LICIPO to open for subscription on May 4, priced at ₹902 - ₹949.
#IPO valued at 1.11x embedded value.
Below valuation comparison with global and domestic peers.
Originally the EV for LIC was ₹1.25 trillion , after changing the methodology it is ₹5.4 trillion
#LIC
#LICIPO to open for subscription on May 4, priced at ₹902 - ₹949.
#IPO valued at 1.11x embedded value.
Below valuation comparison with global and domestic peers.
Originally the EV for LIC was ₹1.25 trillion , after changing the methodology it is ₹5.4 trillion
#LIC
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Bloomberg article in Feb highlighting how core product of LIC was changed to boost EV. Surplus distribution in Non Participatory policies has been done away with in line with industry , essentially to boost future cash flows , hence boosting Embedded Value.
Bloomberg article in Feb highlighting how core product of LIC was changed to boost EV. Surplus distribution in Non Participatory policies has been done away with in line with industry , essentially to boost future cash flows , hence boosting Embedded Value.
https://twitter.com/bloombergquint/status/1493414716848619521
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