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 present value of expected future profits on in-force business. The performance measure is often expressed in terms of growth (i.e., year-on-year increase) in embedded value. [Source: Casualty Actuarial Society (CAS) Overview of Enterprise Risk Management]
To find out more about risk management, click here
Comments