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Market consistent embedded value review

Time for a new direction?

The European insurance industry is in a period of transition as it wrestles with regulatory change and significant challenges as a result of the political and economic environment.

Our latest report on embedded value reporting of European insurers reviews the 2014 results and highlights the strategic choices open to insurers about how they choose to report to the market in the future.

On 1 January 2016, Solvency II will come into force within the EU. In addition to changing the way that insurers measure their solvency, the regime introduces significant new disclosure requirements. Successfully managing this transition will be challenging, but presents an opportunity for insures to redefine how their business is valued.

This paper considers this challenge and some of the approaches that can be taken to meet investor expectations going forward.

The reported values of a number of the big European insurers were hit by falls in interest rates. Expansion of the stimulus measures announced by the ECB in light of prolonged anaemic growth and the threat of deflation could cause further falls, creating downward pressure on the value of insurers.

This paper provides an overview of the impact these changes have already had on insurers and how they could shape actions going forward.

Market consistent embedded value review
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