The aim of diploma thesis is to outline embedded value, because it is still not very common in Slovakia, pointed to its usefulness and show that it deals with problems better than classical life insurance accounting systems, which can lead to uncertain results and last but not least to highlight the importance of determinig the assumptions in calculations.
The model situation shows the value of new business calculation. The thesis is divided into 3 chapters. Contains 4 graphs, 16 tables and 1 appendix. The first chapter is about current situation of embedded value. It is focused on definitions of basic concepts and assumptions, which influence embedded value.
In the next part we start with history of embedded value and get to the disadvantages of the traditional embedded value and to the transition to market consistent embedded value and the description of its components. The end of the theoretic part presents information about cash flow method, which is used in the practical part.
The final part deals with the practical application of acquired information in the form of value of new business calculation according to the MCEV principles. Main results of studied issue is the value of new business calculation and sensitivity analysis.
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SERDULOVÁ, Jana: Embedded value in life insurance. – The University of Economics in Bratislava. Faculty of Economic Informatics; Department of Mathematics. – Tutor of diploma thesis: Mgr. Tatiana Šoltésová, PhD. – Bratislava: FHI EU, 2011, 71 p.
Key words:
embedded value, value of new business, cash flow, risk discount rate, life insurance