Transcription of Embedded Value (EV) Reporting
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1850 M Street NW, Suite 300 Washington, 20036202-223-8196 FAX Value (EV) ReportingA Public Policy PRAcTicE NoTEMay 2009 American 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.
A3: EV is typically used by life insurance companies. In particular, it is used with long-term business such as life insurance and annuities. As a practical matter, certain short-term business may be excluded because the EV associated with such business may be immaterial. Q4: How does EV relate to the actuarial appraisal value of a company that is
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