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Embedded value - Operating assumption changes

p_0910

Keen member
I want to confirm my understanding that changes in the supervisory basis should impact both the PVIF (as the difference between supervisory valuation and EV basis valuation will change) and net assets (as assets - supervisory liabilities will change), whereas changes in the EV projection basis will typically only impact the PVIF (unless there are resultant changes in the cost of capital in which case it would also impact net assets) - would that be correct?
 
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