Valuation of IPO-bound LIC based on global peers' m-cap, return prospects

The government believes LIC's valuation would surge, following the insurer's lisiting

The market valuation of the country’s biggest insurance firm, Life Insurance Corporation (LIC), has been pegged at Rs 6 trillion after taking into account the market value of global insurers, such as Shenzhen-based Ping An Insurance, and growth prospects of LIC's return on embedded value (RoEV), according to a government official.

Investors, in their consultation with the government, cited the market cap of Ping An Insurance, which is around 0.7 times its embedded value. LIC’s projected valuation is currently pegged at a premium of 1.1 times its embedded value of Rs 5.4 trillion, considering that India is an underpenetrated insurance