Embedded Value

Discussion in 'SP2' started by jasonyxxu, Oct 5, 2015.

  1. jasonyxxu

    jasonyxxu Member

    How does Embedded Value change with the following situations:
    (i) strengthen in the reserving basis
    (ii) strengthen in the experience basis
     
  2. Muppet

    Muppet Member

    For non profits:
    (i) defers profits so EV will likely decrease if risk discount rate is greater than i. Might stay the same if discount rate = i.
    (ii) resuts in lower expected profits and so lower EV.
     

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