What price consistency?
MCEV's purpose was to enable transparent arbitrage-free comparison of different insurers. But with figures subject to depressed asset prices at a time of unprecedented market volatility, its methodology is under fire. Laurie Carver reports
Be careful what you wish for. In the last few years, major insurance players have been pushing for more market consistency in the industry, as the philosophy of the boom times deemed this the only truth worth dealing with. In the grip of this mindset, senior management updated its embedded value methodology - originally invented to sweeten the price in a hostile takeover of UK life group Pearl -
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