Embedded value - Operating assumption changes

Discussion in 'SA2' started by p_0910, Jan 31, 2024.

  1. p_0910

    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?
     
  2. Lindsay Smitherman

    Lindsay Smitherman ActEd Tutor Staff Member

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