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.
The improving operating performance will ultimately enhance the company's embedded values.
Improving operating performance will further enhance the company's embedded values.
Favorable operating performance has led to a significant increase in embedded values in 2003.
Nonetheless, as for other reinsurers the Embedded Values and the analysis of value added shown are subject to greater uncertainty, about the value itself and about the evolutions from one year to another, than would be the case for a direct writer.
But of equal if not greater importance for the long haul, are the embedded values and culture of an organization.
Nonetheless, as for the other reinsurers the Embedded Values and the analysis of value added shown will be subject to greater uncertainty than would be the case for a direct writer.
Embedded Values can also guide management in making important strategic decisions, such as how best to deploy capital and evaluate their financial performance in volatile times.
The new entity will have the resources to grow and expand its application offerings in areas such as business planning, sophisticated asset-liability risk analysis, pricing of innovative products, valuation and the calculation of embedded values.