Life Insurance: Embedded Value and Valuation (1 day)
London
Greater London
E1 8QS
United Kingdom
What You Will Learn :
- Features of the life insurance business
- Key life insurance products: traditional vs. unit linked business
- Embedded value: key concept, calculation and disclosure
- Insurance solvency requirements under solvency I v solvency II
Description
Life insurance is a rather technical sector with specific additional voluntary disclosure called embedded value which should provide a better basis to assess performance. This course demystifies the embedded value concept and uses it as a basis to value a life insurance company. The course concludes with a review of insurance trading multiples and sum-of-the-parts valuation for multi-line businesses.
Learning Outcomes
- Features of the life insurance business
- Key life insurance products: traditional vs. unit linked business
- Forecasting income statement, reserves and cash flows of a traditional life policy: calculation of new business value
- Limitations of IFRS accounting for insurance
- Embedded value: key concept, calculation and disclosure
- Embedded value earnings: new business value and return on existing business
- European embedded value and market consistent embedded value
- What is EEV? A DDM produced by actuaries on part of the business
- Using embedded value to complete an appraisal valuation of the life business
- Can you use someone else’s DDM as a basis for your own valuation?
- Sensitivity analysis of EEV to key value drivers
- Analysis and valuation of multi-line insurance companies combining life and non-life
- Insurance solvency requirements under solvency I v solvency II
- Sum-of-the-parts valuation of multi-line insurance companies
- Trading multiples for insurance companies: P/E vs. P/EV earnings and P/EV
- Summary and conclusions
Who is this course for?
New hires who have joined the firm late and missed the in-house program
Individuals looking to fill a knowledge gap
Experienced bankers looking to refresh their technical skills
Teams employed in financial strategy roles from non-banking corporations
Graduates preparing to interview for a role in the finance sector
Students at business school and looking for a career in finance