How money

To extract value from the national insurer, the government first had to create about $850 million in shareholder funds that LIC didn’t need; it did that by letting its dividends accumulate for a couple of years. Next, New Delhi will sell 5% of this puffed-up stake to narrow a $213 billion hole in its budget. While the offer price is still undisclosed, the risk is that to make the sale appealing when investors globally are on the edge about U.S. monetary tightening and the risk of war in Ukraine, the government might sacrifice the long-term interest of small savers, the same people who actually funded the business and continue to make it tick.

That controversy centers on embedded value, a measure used by the life insurance industry that combines capital and surplus accumulated in the past with the present worth of future profits from in-force policies. The IPO prospectus filed on Sunday pegged LIC’s embedded value at $72 billion. By tweaking its surplus sharing policy, the institution has given a fivefold boost to the present value of future profit in just six months. Still, critics claim that the exercise grossly undervalues the franchise, including a sprawling real-estate portfolio.

That controversy centers on embedded value, a measure used by the life insurance industry that combines capital and surplus accumulated in the past with the present worth of future profits from in-force policies. The IPO prospectus filed on Sunday pegged LIC’s embedded value at $72 billion. By tweaking its surplus sharing policy, the institution has given a fivefold boost to the present value of future profit in just six months. Still, critics claim that the exercise grossly undervalues the franchise, including a sprawling real-estate portfolio.

That controversy centers on embedded value, a measure used by the life insurance industry that combines capital and surplus accumulated in the past with the present worth of future profits from in-force policies. The IPO prospectus filed on Sunday pegged LIC’s embedded value at $72 billion. By tweaking its surplus sharing policy, the institution has given a fivefold boost to the present value of future profit in just six months. Still, critics claim that the exercise grossly undervalues the franchise, including a sprawling real-estate portfolio.

That controversy centers on embedded value, a measure used by the life insurance industry that combines capital and surplus accumulated in the past with the present worth of future profits from in-force policies. The IPO prospectus filed on Sunday pegged LIC’s embedded value at $72 billion. By tweaking its surplus sharing policy, the institution has given a fivefold boost to the present value of future profit in just six months. Still, critics claim that the exercise grossly undervalues the franchise, including a sprawling real-estate portfolio.

That controversy centers on embedded value, a measure used by the life insurance industry that combines capital and surplus accumulated in the past with the present worth of future profits from in-force policies. The IPO prospectus filed on Sunday pegged LIC’s embedded value at $72 billion. By tweaking its surplus sharing policy, the institution has given a fivefold boost to the present value of future profit in just six months. Still, critics claim that the exercise grossly undervalues the franchise, including a sprawling real-estate portfolio.

That controversy centers on embedded value, a measure used by the life insurance industry that combines capital and surplus accumulated in the past with the present worth of future profits from in-force policies. The IPO prospectus filed on Sunday pegged LIC’s embedded value at $72 billion. By tweaking its surplus sharing policy, the institution has given a fivefold boost to the present value of future profit in just six months. Still, critics claim that the exercise grossly undervalues the franchise, including a sprawling real-estate portfolio.