In the calculation of EV, what does "release of shareholder-owned net assets" mean? Why not just net assets, why do we need to say release and shareholder-owned?
Hi Kimiko Embedded values are designed to place a value on the company for shareholders. So they should only include the shareholders' share of the net assets. A with-profits fund might have shared ownership, for example the policyholders might own 90% and the shareholders own 10%, so the EV should only allow for 10% of the net assets. More detail is in SA2. I agree that we don't need to say release. Best wishes Mark
