Hi tutors, This question relates to publishing EV under SII. In the solution, it mentioned 'under SII, the sale of profitable new business is reflected, and so stakeholders will get this information...'. Did the solution mean the new business is reflected in the NAV? If not, where exactly? Many thanks M.
As Solvency II includes the present value of liabilities on a best estimate basis it will reflect new business profitability. This wasn't how Solvency I values were determined and so EV was useful as it gave an idea of the profitability of new business written. As we have this now under Solvency II, perhaps it reduces the need for EV reporting. Sarah
Hi Sarah Thanks for your response. So under SII, is it the change in the NAV we should use to measure NB profitability? Thanks M.