Page 13 - The Insurance Times August 2022

culating the latest Indian embedded increased, and hence there was a net cent to close at Rs 684.15 apiece while
value of LIC. The mark-to-market losses growth of around Rs 2,000 crore com- that of Sun Pharmaceuticals fell 0.75
have been around Rs. 40,000 crore pared with September." per cent to Rs 868.05 apiece.
since September till 31 March, 2022.
The bifurcation of the life fund into par
However, the policy sales business has
and non-par took place in September LIC adds Rs 1,983 cr in kitty
grown and that's how the net growth
last year, hence there was a jump in
in EV is Rs. 2,000 crore," he said. The by offloading shares in Si-
the IEV of the corporation in Septem-
insurer's board met earlier in the day. emens, Icra
ber.
For every 10% fall in equity market, LIC said it has offloaded its stake in
LIC's embedded value decreases by LIC reduces stake in Sun heavy electrical equipment maker Si-
6.5%, said the insurer. emens and rating firm Icra for over Rs
Pharma; sells shares worth
1,983 crore.
LIC embedded value flat at Rs 3,821 crore in over 1 Corporation's shareholding in Siemens
Rs. 5.41 trillion year Ltd has diluted from 25,623,599 to
18,412,652 equity shares, decreasing
Life Insurance Corporation said it has
Life Insurance Corporation of India's
its shareholding from 7.195 per cent to
reduced shareholding in Sun Pharma-
(LIC's) Indian embedded value (IEV)
5.170 per cent of the paid-up capital of
ceuticals by selling 2 per cent stake in
grew marginally to Rs 5.41 trillion as of
the said company, Life Insurance Cor-
the company for about Rs 3,882 crore.
March 2022 compared with Rs 5.39 tril- poration (LIC) said in a regulatory filing.
The shares were sold through open
lion as of September 2021, even as the
market transactions during the period LIC said its holding in Siemens de-
value of new business (VNB) margin
from May 17, 2021 to July 22, 2022, creased by over 2 per cent from Octo-
grew by 580 basis points to 15.1 per
according to a regulatory filing. ber 14, 2020, to July 18, 2022, at an
cent during this period due to the di-
average cost of Rs 2,701.19 per piece.
versification of its product mix. "This is to inform that corporation's
shareholding in Sun Pharamceuticals This translates into LIC getting over Rs
The increase in the IEV was marginal as
has diluted from 16,85,66,486 to 1,947.81 crore by selling shares of the
the insurer took a Rs 40,000-crore hit
12,05,24,944 equity shares, decreasing heavy electrical equipment maker.
from its investments. This was partially
its shareholding from 7.026 per cent of
offset by the sharp rise in VNB margins. Separately LIC said it has reduced its
the paid-up capital of the said com-
According to the data released by LIC, stake in Icra from 5,60,863 equity
pany," it said.
its IEV as of March 31, 2022, stood at shares to 3,31,434 shares from Septem-
Under Sebi norms, listed companies are ber 6, 2021, to July 18, 2022, at an av-
Rs 5,41,492 crore compared with Rs
required to intimate the stock ex- erage cost of Rs 1,541.85, garnering Rs
5,39,686 crore on September 30, 2021,
changes when their shareholding in an 35.37 crore from the sale.
and Rs 95,605 crore on March 31, 2021.
entity falls by 2 per cent or more.
LIC scrip closed at Rs 688.75 apiece on
KR Ashok, executive director (actu-
The shares were sold at an average BSE, down by 1.09 per cent from the
arial), LIC, said, "The change in EV has
price of Rs 808.02 apiece, valuing the previous close.
to be looked at in totality. There was a
transactions at a total of Rs 3,881.85
mark-to-market loss of around Rs The scrip of Siemens ended 1.03 per
crore.
40,000 crore (equity and debt) that has cent lower at Rs 2,686.15, while Icra
been captured in the calculation. How- On the BSE, shares of LIC (Life Insur- stock closed 0.17 per cent up at Rs
ever, the other factors such as the VNB ance Corporation) declined 0.70 per 4,053.35.
Bajaj Allianz Life Insurance new premium doubles
Bajaj Allianz Life Insurance Company Limited (BALIC) new business premium for Q l FY23 more than doubled to Rs.
2,917 crore against Rs. 1,296 crore in Q l FY22. Individual rated new business premium was Rs. 895 crore in Ql FY23
against Rs. 493 crore in Ql FY22 - a market-beating growth of 81%. Group protection new business was at Rs. 574 crore
in Ql FY23 versus Rs. 326 crore in Ql FY22 - an increase of 76%. BALIC's shareholders' profit after tax during Ql FY23
stood at Rs. 124 crore versus Rs. 84 crore in Q l FY22- an increase of 48%. Also, Net New Business Value (NBV), which
is the metric used to measure the profitability of the life insurance business, was significantly higher to Rs. 135 crore in
Ql FY23 versus Rs. 25 crore in Ql FY22.
The Insurance Times, August 2022 13