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Insurers often use embedded value (EV) to value long-term insurance contracts.

Many countries use EV in their financial reporting. IFRS 4 Phase I, which was introduced in March 2004, permitted companies to continue their existing accounting practices for insurance contracts, and enhanced existing insurance liability valuation methods by requiring insurers to perform a Liability Adequacy Test.

We have extensive experience in providing consulting services to insurers that meet their specific needs.

Examples of the work we do:

  • Model future cash flows to test Profitability
  • Calculate adjusted net asset values
  • Calculate EV
  • Analyze movement in EV
  • Analyze sensitivity of EV
  • Implement long-term profit and loss model
  • Provide EV consulting and business planning
  • Implement Liability Adequacy Test (LAT) model reflecting Solvency II