MCEV – the quest for market consistency

frieder-knuepling-scor

If you believed in the validity of market-consistent embedded value (MCEV) as a metric for valuing insurance companies at the end of 2008, then Allianz Life, the US subsidiary of Munich-based Allianz, must have looked an interesting takeover prospect. MCEV’s harsh treatment of embedded guarantees and long-dated products means Allianz Life was worth €3.3 billion (£2.7 billion) – a 215% fall in the company’s MCEV in the space of a year. So if MCEV was a truly accurate reflection of company value

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

The future of life insurance

As the world constantly evolves and changes, so too does the life insurance industry, which is preparing for a multitude of challenges, particularly in three areas: interest rates, regulatory mandates and technology (software, underwriting tools and…

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here