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: Read the September 2020 issue of Risks & Rewards published by the Investment Section. Newsletters provide practical information for the working actuary, articles on trends that impact sections and news about section activities.

Description: This article describes the need for and the benefits of implementing a financial education program for employees

Description: Irish actuary and professor explains his hypothesis that actuaries, as practitioners, are reluctant to adopt the theories of financial economists unless the models on which the theories are based fit the actual data the actuaries have.

Description: The Society of Actuaries’ Investment Section and Committee on Finance Research and Investment Section is pleased to make available a research report using a comprehensive attribution analysis to identify meaningful relationships between market volatility and potential causes. Also included for educational purposes are the open-source codes used to perform the analysis.

Description: Examine how investment portfolios have been changing over recent years with a panel of industry experts from the life insurance industry, and learn what lies ahead. This will be a highly practical session, with real-life case studies referenced as much as possible.

Description: How insurers can include a liquidity score and liquidity stress scenarios as part of their asset liability management (ALM) protocol.

Description: This report is about the implications for actuaries from the ISSB and global climate-related financial disclosure standards, addressing standards, regulations, and actuarial involvement. It discusses the new ISSB standards, their requirements, and the role of actuaries in climate risk management.

Description: The Society of Actuaries’ Committee on Finance Research is pleased to make available a research report covering the extent to which investment sectors have been contagiously affected by major disasters.