The Theory and Practice of Contained Value in Life Insurance Companies

Author: (English) H.G. Wells / Zhang Leifang / Yan Weiming
Publisher:
Publish Date: 2005-07-01
Features: The business objective of life insurance companies is to create sustainable value for shareholders and policyholders. Therefore, a value management model based on value assessment has gradually become an important management approach for many renowned life insurance companies worldwide to enhance management standards and promote company development. Intrinsic value is the core of a life insurance company's value and provides a relatively objective description of its true value. Thus, accurately assessing intrinsic value is the foundation for accurately evaluating the company's overall value. This book consists of four chapters. Chapter 1 introduces the concept and significance of intrinsic value, covering the concept and development history of intrinsic value, theories of company value assessment, and the application and significance of intrinsic value in various countries. Chapter 2 focuses on intrinsic value reports and financial reports of life insurance companies, analyzing the characteristics of insurance business profits, insurance business profits under Generally Accepted Accounting Principles (GAAP), intrinsic value profits of life insurance companies, interpretation of intrinsic value reports, and a comparison between intrinsic value and Economic Value Added (EVA) and shareholder value added. Chapter 3 summarizes international experiences in the intrinsic value reporting system of life insurance companies and conducts an international comparison of intrinsic value reports. Chapter 4 covers the calculation methods and applications of intrinsic value in life insurance companies, introducing the steps for calculating intrinsic value, case studies of intrinsic value calculations, specific applications of intrinsic value, and evaluation. Additionally, we have included the "Guidance on the Preparation of Intrinsic Value Reports for Life Insurance" be issued by the China Insurance Regulatory Commission as an appendix for reference by readers.