Embedded value

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Since the concept of calculating embedded value (EV) first emerged in Europe, Milliman experts have led the way. Our UK practice has broad experience in EV, from implementation to evaluating results. We assist clients not only in performing EV calculations, but in interpreting the data and understanding the implications of changes in embedded values over time.

As methods for calculating EV evolve, Milliman offers guidance on the merits of the various forms and helps clients to understand how the new developments affect them. With Solvency II compliance dates approaching, companies are turning to Milliman for guidance in how to create state-of-the-art embedded value frameworks, offering thorough documentation and the ability to easily track trends in EV over time.

It's one thing to calculate embedded value, and another to understand the implications of your EV results. Our expertise in calculating nonfinancial risks is invaluable in helping companies compose a complete picture of all the risks in their business, how those risks interact, and how they affect the entire organization. This insight allows companies to better evaluate business proposals with the long-term health of the company in mind.

Firms often begin with one form of EV but then contemplate a switch to another EV method. Milliman offers invaluable expertise in weighing the advantages of such a change and in guiding these transitions.

Tracking industry trends

Milliman maintains records of the assumptions and methods used by major insurance groups in the UK and throughout Europe.  Our comprehensive database tracks changes in calculation methods and uncovers current and emerging issues around EV. In addition, our analysts share with clients their published reports on EV developments worldwide throughout the year.