Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 2 terms
A life insurer's net worth plus the present value of future profits expected from policies already sold.
The book-value equivalent for insurers, and a model rather than a measurement. Shift the assumed lapse or discount rate and it moves materially, which is why the sensitivity tables matter.
The share of a life insurer's policies still being paid at set intervals after sale.
Embedded value assumes policies run their full term. Strong VNB growth alongside falling persistency is value being reported that will never be collected.