What Is an Actuarial Valuation?
The common valuation method for life insurance companies is actuarial valuation, that is, the actuarial value is equal to the sum of the intrinsic value and the value of the new business.
Actuarial valuation
Right!
- Chinese name
- Actuarial valuation
- Application
- Life insurance company
- Meaning
- Equal to the sum of intrinsic value and new business value
- Connotative value
- Net asset value and effective business value
- The common valuation method for life insurance companies is actuarial valuation, that is, the actuarial value is equal to the sum of the intrinsic value and the value of the new business.
- Actuarial valuation
- At present, the common valuation method of life insurance companies is actuarial valuation, that is, the actuarial value is equal to the sum of the intrinsic value and the value of the new business.
- The intrinsic value includes the net asset value and effective business value of life insurance companies.
- Effective business value refers to the calculated value of the discounted future distributable after-tax profits expected from the existing effective business, which is equivalent to the "current value" or "liquidation value".
- The value of new business is the sum of the discounted profits expected to be generated by the new policies issued each year in the future.