Value of the Insurer Embedded Value
- This topic is empty.
-
Posts
-
Rishabh Surana
Introduction to Embedded Value : https://forum.theactuarialclub.com/introduction-to-embedded-value-t3035.html Embedded Value measures the value of the insurer by adding today’s value of the existing business (i.e. future profits) to the market value of net assets (i.e. accumulated past profits).
It is a conservative measure of the insurer’s value in the sense that it only considers future profits from existing policies and so ignores the possibility that the insurer may sell new policies in future. It also excludes goodwill. As a result, the insurer is worth more than its EV.
Key results of Embedded Value :
1)Increase in Embedded Value
2)Rate of change of Embedded Value
3)Value added (subtracted) by new business
4)Movement Analysis
5)Sources of change in value from one period to another
Sent from my SM-A605G using
Actuarial Info mobile app
- You must be logged in to reply to this topic.