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]

To find out more about risk management, click here

Recent Posts

See All

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 so

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

Earnings before interest, dividends, taxes, depreciation and amortization (EBITDA)

Earnings before interest, dividends, taxes, depreciation and amortization (EBITDA) is a form of cash flow measure, useful for evaluating the operating performance of companies with high levels of debt