MCEV - Move to MCEV doubles Aviva losses

News

The switchover from European Embedded Value (EV) to its market-consistent counterpart (MCEV) has seen UK insurer Aviva record a loss of £2.3 billion in the first six months of 2008 - compared with only a £1.3 billion deficit under the old system, according to the company's half-yearly report.

Aviva is the first major UK group to post its figures using the MCEV metric developed by the Chief Financial Officers Forum, and its use of the risk-free rate to discount annuity business was responsible for