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 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]


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Economic capital

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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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