Economic capital

Economic capital is the market value of assets minus fair value of liabilities. Used in practice as a risk-adjusted capital measure; specifically, the amount of capital required to meet an explicit solvency constraint (e.g., a certain probability of ruin). [Source: Casualty Actuarial Society (CAS) Overview of Enterprise Risk Management]


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Embedded value

Embedded value is a measure of the value of business currently on the books of an insurance company; it comprises adjusted net worth (the market value of assets supporting the surplus) plus the presen

Economic value added (EVA)

Economic value added (EVA) is a corporate performance measure that stresses the ability to achieve returns above the firm's cost of capital. It is often stated as net operating profits after tax less

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