LIC IPO: Three companies involved in the race to become functional


new Delhi: The exercise of IPO of Life Insurance Corporation of India (LIC) is going ahead. Three companies are involved in the race to become functional. These include EY Experimental Services, Milliman Advisors and Willis Towers.

On Thursday, these companies presented their proposal to the government, after which the financial bids were opened. A senior official said that the process may take weeks.

Earlier, the government had sought applications for the appointment of an actuarial firm. This will determine the embedded value of LIC. LIC will have to prepare Indian Embedded Value (IEV) before launching the IPO. In the process, the value of the company will be judged, including real estate.

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The chosen firm will work with the already determined actuaries and LIC management and assess the valuation of LIC. The determination of IEV will be done under the Life Insurance Corporation of India Act. Also, they have to follow the rules of the insurance regulator.

The selected firm will have to estimate the net worth of the company till 31 March 2020 and 31 March 2021. The valuation of the new business coming in during the financial year 2020-21 can affect the company.

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