Embedded Value (EV) Reporting

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1850 M Street NW, Suite 300Washington, 20036202-223-8196FAX Value (EV) ReportingA Public Policy PRAcTicE NoTEMay 2009American Academy of ActuariesLife Financial Reporting Committee Practice Note on Embedded Value (EV) Reporting This practice note was prepared by a work group organized by the Life Financial Reporting Committee within the Life Practice Council of the American Academy of Actuaries. The practices presented here represent observations of actuaries working in the life insurance industry. This practice note is not a promulgation of the Actuarial Standards Board, is not an actuarial standard of practice, is not binding upon any actuary and is not a definitive statement as to what constitutes generally accepted practice in the area under discussion. Events occurring subsequent to this publication of the practice note may make the practices described in this practice note irrelevant or obsolete.

Embedded value reporting is growing in importance in the US and Canada. Most European insurance groups (and by extension, their North American subsidiaries) are reporting embedded value results publicly. In addition, the concept behind embedded value is similar in nature to trends in financial reporting.

  Value, Embedded, Embedded value