Hi In Ch 18 Embedded Value as per Acted 19 material,could u pls explain the following line on pg3," In particular, supplementary embedded value reporting recognises profit from selling new business."? Since EV doesn't include New Business as per the EV concept.
FWIW it seems to be rather risky to be taking the exam using materials that are now five years out-of-date. [I have changed the thread title to reflect that this is now Chapter 17, in case this confuses other users.] You are correct that the EV calculation does not include the value of business that has not yet been written. But this point is talking about recognising profit, which (on the supplementary EV reporting basis) would mean the change in EV over the period. EV at end of period includes the value of business written during the period, hence it is captured in the change in EV.
