Description: The amount of 1 [i.e., the amount that $ 1 is worth after 1 year] for an account earning a nominal interest r compounded n times annually is Pn[r,t], where t = [t1, . . . ,tn]. Note that Pn[r,t] is a polynomial in r of degree n. Now suppose that the n compounding periods have lengths T1, . . . ,Tn chosen at random. What can we say about Pn[r , T] , where T=[T1, . . . , Tn]? This depends of course on what is meant by choosing random lengths and we will consider two different natural possibilities that give rise to different answers to this question.

Description: Insurance company financial reporting and performance measurement are going through a significant transformation. Insurers are beginning to look at their business based on what many refer to as the “economic value framework.” Under this framework insurance companies determine the economic value of the capital invested in their business and the economic value of earnings to derive a risk-adjusted return on capital. Standard setters, primarily European insurance regulators through Solvency II and the International Accounting Standards Board through IFRS Phase II, propose adopting many of these concepts for solvency and performance reporting.

Description: This paper introduces basic embedded value EV principles, concepts and formulas that will be especially valuable to the beginning students of EV.

Description: Panelists discuss the process and challenges presented by mergers or acquisitions. From the Record of the Society of Actuaries, Vol. 24, No. 2.

Description: This article explains the issue causing from asset dependency discounting as required by IFRS 17, and proposed some possible methods to solve the issue.

Description: This paper advocates asset/liability management for pension plans. It identifies the economic factors that influence the economic value of liabilities and discusses the typical asset portfolio that results.