This study focuses on the valuation of the assets of Life Insurance Corporation (LIC), which is the largest Insurance Company in India for the purpose of its Initial Public Offer (IPO). It highlights the Embedded Value model adopted for arriving at the business value of a Life Insurance Company. The traditional methods of valuation like Discounted Cash Flow Method (DCF), Net Asset Value method (NAV), Market Value method (MV), Dividend Discount method (DDM) are not used for but instead Embedded Value method is used in Life Insurance Company because the value depends on the future profits/surplus earned by it from Insurance Policies sold in the present including the Shareholders Net Worth. The study shows the valuation methodology, assumptions taken by the actuaries for the valuation.