Life Insurance: Embedded Value and Valuation (1 day)
Life insurance is a rather technical sector with specific additional voluntary disclosure called embedded value which should provide a better basis to assess performance. This course demystifies the embedded value concept and uses it as a basis to value a life insurance company. The course concludes with a review of insurance trading multiples and sum-of-the-parts valuation for multi-line businesses.
Upcoming start dates
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Online delivery option may be available - Please contact provider
- Self-Paced Online
Suitability - Who should attend?
- New hires who have joined the firm late and missed the in-house program
- Individuals looking to fill a knowledge gap
- Experienced bankers looking to refresh their technical skills
- Teams employed in financial strategy roles from non-banking corporations
- Graduates preparing to interview for a role in the finance sector
- Students at business school and looking for a career in finance
Training Course Content
- Features of the life insurance business
- Key life insurance products: traditional vs. unit linked business
- Forecasting income statement, reserves and cash flows of a traditional life policy: calculation of new business value
- Limitations of IFRS accounting for insurance
- Embedded value: key concept, calculation and disclosure
- Embedded value earnings: new business value and return on existing business
- European embedded value and market consistent embedded value
- What is EEV? A DDM produced by actuaries on part of the business
- Using embedded value to complete an appraisal valuation of the life business
- Can you use someone else’s DDM as a basis for your own valuation?
- Sensitivity analysis of EEV to key value drivers
- Analysis and valuation of multi-line insurance companies combining life and non-life
- Insurance solvency requirements under solvency I v solvency II
- Sum-of-the-parts valuation of multi-line insurance companies
- Trading multiples for insurance companies: P/E vs. P/EV earnings and P/EV
- Summary and conclusions
Course delivery details
While this is a face to face training course, a blended learning approach is taken and delegates will be provided with access to AMT Online. Our study materials contain both the knowledge and practice materials required to assist with the learning process and help you in your job role. Course materials include:
- laminated summary sheets
- 24/7 access to DELTA online learning environment
- class recordings
- course notes
- electronic homework/study files
Average rating 4.8
Really straightforward and in-depth - thanks!
I like the training very much and the trainer taught us step by step. This indeed helps me to follow easily.
I think the trainer is doing an incredible job at explaining concepts, answering questions, and pitching at the right level (for me at least!). I'm learning a tonne. Keep it up!