Milliman Releases Major Study: "2011 Embedded Value Results - Generating Value"

LONDON, July 25, 2012 /PRNewswire/ -- Milliman, Inc., a premier global consulting and actuarial firm, today announced the availability of a new report detailing Embedded Value results for 29 major insurance companies in Europe.

The report examines trends among European companies reporting embedded values at year end 2011, with a particular emphasis on issues that have emerged in the course of the financial crisis.  The report compares practices followed by major European companies, and discusses embedded value reporting issues in the broader context of Solvency II and International Financial Reporting Standards. 

Against this challenging economic climate, the majority of CFO Forum members experienced falls in their embedded values, with only a small handful experiencing modest increases. Overall, combined embedded value for these companies fell compared to year end 2010. However, the total value of new business remained fairly stable.

Three key areas in embedded value methodology stood out as hot topics, as companies sought to align their methodologies with other developing reporting metrics, such as Solvency II, and further enhance their embedded value models. These were (1) the construction of the risk discount rate, especially allowances for liquidity, (2) allowing for cost of capital and (3) recognising the time value of options and guarantees.

Interested parties may obtain a copy of the Milliman study at: http://insight.milliman.com/article.php?cntid=8101 or further information by telephoning Philip Simpson in London at +44-20-7847-1543 or Emma McWilliam in London at +44-20-7847-1524.

About Milliman
Milliman is among the world's largest providers of actuarial and related products and services. The firm has consulting practices in healthcare, property & casualty insurance, life insurance and financial services, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe.  For further information, visit milliman.com.