Description: A critical step in valuing a company for the purpose of financial reporting is the computation of the market value of economic surplus (MVES). This article provides a novel approach to the valuation of MVES that is stable and reasonably immune to “market noise.” Current approaches to the calculation of economic surplus of an insurance company generally define such surplus as the market value of the assets (MVA) supporting the liabilities less the market value of liabilities (MVL). While MVA is observable in the market, MVL is typically computed directly, without regard to the underlying supporting assets. Subtracting MVL from any value of assets that changes with market movements results in an unstable surplus. Consequently, a surplus that is not fully reflective of market sentiment has been rejected by many. This same approach is further used in the calculation of market consistent embedded value (MCEV) when a balance sheet approach is used .

Description: Hear from the editor’s on the December 2018 issue of Risk Management published by the JRMS.

Description: This article discusses the impact of ERM on smaller insurance companies.

Description: This article is a summary of two presentations sponsored by the Small Insurance Company Section. The first was a webcast on March 13, 2012, and the second was at the ERM Symposium on April 20, 2012.

Description: This article discusses that several ERM characteristics mitigate the effects of bad corporate culture, including: • The whole firm is considered the system in view holistic characteristic. • Peers are empowered to lead in positive ways intensive management characteristic. • Risk taking should be separated from risk management objective assessment characteristic. • Risk management is a key corporate value, second only to profit maximization postmodern characteristic.

Description: The Chairperson of the section talks about how members can participate and make a difference in the section.

Description: In this article, the author discusses the need to create a systemic risk regulator.

Description: In this article, the author discusses the capital shortfall an insurer faces because of the longevity risk on immediate annuities.

Description: Read the March 2017 issue of Risk Management published by the Joint Risk Management Section. Newsletters provide practical information for the working actuary, articles on trends that impact sections and news about section activities.

Description: Read the French language version of the March 2017 issue of Risk Management published by the Joint Risk Management Section. Newsletters provide practical information for the working actuary, articles on trends that impact sections and news about section activities.