The return on embedded value
in 2010 was 11%, Storebrand said in presentation materials, released ahead of its investor day today.
Ultimately, the IPO price and its valuation is determined by the company and its underwriters, who gauge the specific embedded value
figure that mutual fund investors are comfortable with, hoping to find a number that encourages the best demand.
Some companies have started implementing an economic capital approach and others have initiated limited pilot studies to begin gauging the impact of market-consistent embedded value
and aspects of International Financial Reporting Standards and Solvency II.
Great Eastern CEO, Khor Hock Seng, said, 'We continued to see sustained and positive growth during Q2-17 in our key operating metrics such as Group Profit Attributable to Shareholders, New Business Embedded Value
and Total Weighted New Sales.
The acquisition is complementary to Chesnara's UK life books and is seen to be enhancing to the embedded value
and cash generation ability of Chesnara in the medium term, upon integration, the buyer has said.
Several investors questioned the embedded value
accounting methods used to value AIA, the FT said.
Operating profit on the less forgiving market consistent embedded value
fell to pounds 978million from pounds 1.
has long been used, especially in Europe, to measure the underlying risk and value of insurance liabilities.
Britain's third biggest insurer saw its shares price go up by 6% after it announced the half-year rise in operating profits, from pounds 589m to pounds 626m, based on a European embedded value
(EEV) industry standard.
Securitizing embedded value
in these insurance products is done by determining the embedded value
of future profits, Brockwell's presentation showed.
The group's embedded value
figure - an industry measure which smooths future profits from life assurance and pensions business - was much higher than the range of pounds 616m and pounds 749m forecast in the City.