Milliman Advisors selected as reporting actuary for LIC embedded value

Milliman Advisors LLP India has been selected as the reporting actuary for the embedded value of Life Insurance Corporation of India.The firm was chosen from three in the race including EY Actuarial Services and Willis Towers Watson Actuarial Advisory."Work will begin soon," Tuhin Kanta Pandey, secretary of department of investment and public asset management (DIPAM) said Thursday, announcing the selected firm.The government had invited interest for the appointment of an actuarial firm to determine the embedded value of LIC of India, taking the next step towards the public listing of the country’s largest public insurer.LIC needs to develop an Indian Embedded Value (IEV) reporting framework for the necessary disclosures in the proposed initial public offer.The government has to undertake the exercise to arrive at the IEV of the company, which will include valuation of its massive real estate assets. The firm will work with management of LIC to arrive on a method to calculate IEV and determine that it complies with Indian guidelines under the LIC Act and those issued by the insurance regulator, among others.The reporting actuary will have to determine the IEV comprising adjusted net worth and value of in-force business as of March 31, 2021, and for the previous period as of March 31, 2020. The value of new business for FY21, sensitivity results for IEV as of March 31, 2021, and analysis of movement in IEV for FY21 will also have to be provided.The government had set a divestment target of Rs 2.1 lakh crore for FY21, of which over Rs 90,000 crore is expected from the sale of stake in financial institutions including LIC and IDBI Bank, while the larger chunk is expected from the divestment of public sector enterprises.

from Economic Times https://ift.tt/2L9O689