Embedded Value

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Embedded Value

The value of a company that is calculated by adding together its adjusted net asset value and the present value of potential future profits. That is, the embedded value considers what the owners of the company have received in the past and what they are likely to receive in the future. Embedded value is an inherently conservative valuation method, excluding intangible assets and assuming that earnings will not increase in the future. The measure is most common outside North America, especially in the insurance industry.
References in periodicals archive ?
companies already are examining the economic capital and European embedded values/market-consistent embedded value experiences of their European peers.
Strongly capitalised players such as insurer Swiss Re, and Resolution Life Group, set up with the backing of other insurers, have started buying up funds at a discount to their embedded values and using the returns they generate to provide secured long-term yields.
These include the notion that media construct and are constructions of reality, that media contain embedded values, that different audience members respond differently to media, that media operate with a commercial imperative, and that each medium has its own codes, conventions, and aesthetics.