Embedded value


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We assist clients in performing embedded value (EV) calculations, interpreting the data, and understanding the implications of changes in EV over time. We have extensive background in developing embedded value calculation models. We perform modeling work using propriety financial projection software.

Our strong experience in EV calculation and sensitivity analysis began with traditional EV, but now extends to European embedded value (EEV) and market consistent embedded value (MCEV) as well.

Our consultants are aware of the latest trends in embedded value, in part through Milliman's annual survey on the current methods major insurance groups worldwide use for EEV calculations. Milliman provides its clients with reliable, independent opinions, satisfying companies' needs for transparency and accuracy.

Transitioning from EV to EEV: We know the fine points 

As the industry moves from traditional embedded-value standards to EEV, Milliman offers clients insight on how to use this more thorough methodology, including understanding the implications of using either a market-consistent or a real-world approach. We also excel in calculating nonmarket and nonfinancial risks.

In recent years, we have developed stochastic models to implement EEV and MCEV for various European groups, using a variety of methods in line with international standards. We have assisted companies with the valuation process, as well as with knowledge transfer and training of company staff in proper use of the new tools and models developed.

The importance of embedded value isn't merely in its calculation, but in understanding what company EV means and how it's changing over time. This is where Milliman offers clients particular expertise. We also educate the audiences our clients need to reach.

With embedded value gaining credence as a calculation method the world over, Milliman is a leading source for industry-best methods and interpretation of embedded value.