LIC embedded value flat at Rs 5.41 trillion; VNB margin rises to 15.1%

In the past, analysts have said that LIC's balance sheet and, in turn, EV remain very sensitive to equity market movements

Life Insurance Corporation of India’s (LIC's) Indian embedded value (IEV) grew marginally to Rs 5.41 trillion as of March 2022 compared with Rs 5.39 trillion as of September 2021, even as the value of new business (VNB) margin grew by 580 basis points to 15.1 per cent during this period due to the diversification of its product mix.

The increase in the IEV was marginal as the insurer took a Rs 40,000-crore hit from its investments. This was partially offset by the sharp rise in VNB margins. According to the data released by LIC on Thursday, its IEV as of March