Embedded Value

General market related questions for Actuarial students!
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Mayank
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19 Oct 2018, 10:59

Definition: Embedded value is the sum of the net asset value and present value of future profits of a life insurance company.

Description: This measure considers future profits from existing business only, and ignores the possibility of introduction of new policies and hence profits from those are not taken into account.

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Mayank Goyal

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