For further information on dates or how to enrol on to our courses, please call +44 (0)20 7549 2591 or alternatively email our bookings team.
Embedded Value and Valuation
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.
- 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
“It’s great to have access to the AMT online platform. I found the videos and quizzes really useful to refer back to after my public course. The videos in particular were simple and easy to understand.” ~ analyst, private equity firm
9.00am - 5.00pm GMT
1 day ( non-exam )
Use any version of MS Excel
- Virtual Classroom
Who should attend the course?
- 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