Finance Ministry invites bids from actuarial firms for valuing LIC

Actuarial firms are been invited by the Fiance Ministry at the embedded value of Life Insurance Corporation (LIC). The government is planning to sell its minority stakes and list it on the bourses. The government has already appointed Deloitte and SBI Caps as pre-IPO transaction advisors.

The Department of Investment and Public Asset Management (DIPAM), issued a notice, it said that LIC needs to develop an Indian Embedded Value (IEV) reporting framework for necessary disclosures for the proposed Initial Public Offering (IPO).


The embedded value is a common valuation measure used to estimate the consolidated value of shareholders’ interest in an insurance company.

The notice further said, that it’s ‘Request for Proposal’ has been issued to seek proposals/bids from reputed and eligible actuarial firms to work with LIC to “develop IEV in line with the requirements of the relevant Acts and regulations, Actuarial Practice Standards and guidance notes issued by the Institute of Actuaries of India and LIC Act, 1956, and to provide support during the IPO process.”

Life Insurance Corporation of India (LIC) is an Indian state-owned insurance group and investment corporation owned by the Government of India.

It was founded on September 1, 1956, when the Parliament of India passed the Life Insurance of India Act that nationalized the insurance industry in India. Over 245 insurance companies and provident societies were merged to create the state-owned Life Insurance Corporation of India.