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Public Course

Life Insurance: Embedded Value and Valuation

Regular price $850.00 USD
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  • What you'll learn
  • Course Information
  • What is a Virtual Classroom
  • What you'll learn
  • Embedded Value and Valuation

    Life insurance is a rather technical sector with specific additional voluntary disclosure called embedded value which should provide a better basis to assess performance. This course demystifies the embedded value concept and uses it as a basis to value a life insurance company. The course concludes with a review of insurance trading multiples and sum-of-the-parts valuation for multi-line businesses.

    Learning outcomes

    • Features of the life insurance business
    • Key life insurance products: traditional vs. unit-linked business
    • Forecasting income statement, reserves and cash flows of a traditional life policy: calculation of new business value
    • Limitations of IFRS accounting for insurance
    • Embedded value: key concept, calculation and disclosure
    • Embedded value earnings: new business value and return on existing business
    • European embedded value and market consistent embedded value
    • What is EEV? A DDM produced by actuaries on part of the business
    • Using embedded value to complete an appraisal valuation of the life business
    • Can you use someone else’s DDM as a basis for your own valuation?
    • Sensitivity analysis of EEV to key value drivers
    • Analysis and valuation of multi-line insurance companies combining life and non-life
    • Insurance solvency requirements under solvency I v solvency II
    • Sum-of-the-parts valuation of multi-line insurance companies
    • Trading multiples for insurance companies: P/E vs. P/EV earnings and P/EV
    • Summary and conclusions
  • Course Information
  • 9.00am - 5.00pm GMT

    1 day (non-exam)

      • What is a Virtual Classroom
      • Virtual Classroom training is a new and highly engaging way of delivering programs remotely with enhanced levels of interactivity compared to conventional webinars. In AMT’s Virtual Classroom participants are encouraged to activate their own webcams and mics throughout the class allowing for real-time engagement, both verbal and non-verbal, with fellow participants and their trainer. Participants can also share their screens to get instant assistance in any technical exercise; just like asking the trainer to walk over and help in the classroom! We have seen a step-change in participant engagement with this new technology. The trainer’s ability to see a selection of their participants’ faces in real-time, and to react to their verbal and non-verbal cues creates a remarkably realistic classroom-like experience. 

        Pre-Requisites

        Who should attend?

        New hires who have joined the firm late and missed the in-house program

        Individuals looking to fill a knowledge gap

        Experienced bankers looking to refresh their technical skills

        Teams employed in financial strategy roles from non-banking corporations

        Graduates preparing to interview for a role in the finance sector

        Students at business school and looking for a career in finance

        What to use

        You need to use a Windows-based laptop for the training with Excel and Adobe installed on your system to access your course files. Our teaching materials are designed for PCs and not MAC based systems. Download details for the necessary files will be emailed a few days before the course. You can use any version of MS Excel in class. Please inform us of your Excel version when booking your course.

        Ask our trainers

        If you have any questions about the course content, you can email our experienced trainers for any further questions

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