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: The October/November 2015 edition of The Actuary magazine—the Society of Actuaries’ flagship publication.

Description: This table shows the results of an attribution of the major contributing factors to the rate of mortality improvement in cardiovascular disease between 1980 and 2000.

Description: An update from the ACLI staff to keep readers informed about the organization's work on tax issues affecting the life insurance industry.

Description: This article is an update, as of September 2019, on projects in process and those recently completed.

Description: An interview of Matthew Bond focusing on pension liabilities.

Description: Mandatory implementation of life principle-based reserves (PBR) is just around the corner and there is no shortage of work to do, as most products have yet to be moved to PBR. Oliver Wyman recently completed its 2019 PBR survey, with more than 40 participants covering 85 percent of the individual life market, including 23 of the top 25 life writers and five reinsurers. This article will expand on the key survey findings, including implementation trends, analysis to date and recent discussions and decisions on the treatment of non-guaranteed reinsurance.

Description: Feature article describing the status of research reports relevant to Financial Reporting Section members.

Description: Editorial for the July 2019 issue of Reinsurance News discussing client satisfaction.

Description: This is a summary of the benefits of attending the 2019 Predictive Analytics Symposium.