top of page

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 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) 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

bottom of page