Embedded Value – EV

Embedded Value (EV) or Market Consistent Embedded Value (MCEV) describes the value embedded in the business. This is typically mostly used in the life business because of the longer term of the insurance contracts. The traditional measures are not always accurate. Hence the need for MCEV. Balance sheet The balance sheet measure assets & liabilities. Because of that it does not really take into account unrealised gains and losses. Profit…

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