Milliman offers exceptional insight into the latest methods for calculating embedded value (EV), including market-consistent embedded value—better known as MCEV, for clients around the world. Many of our life insurance clients are based overseas, where EV first took hold, so we've been implementing it from the start. We have an international viewpoint and extensive practical experience in calculation of embedded value.

Milliman experts are closely tracking EV industry trends. Our international consultants lead an annual survey on the current methodologies used by the major insurance groups in the calculation of their European embedded values (EEV) and examines current and future “hot topics” in EEV methodologies. Our analysts also regularly publish, and share with clients, their observations on the latest EV developments around the globe.

Transitioning from EV to EEV: We know the fine points

For example, as the industry moves from traditional embedded-value standards to EEV, Milliman offers clients insight on how to use this more thorough methodology, including understanding the implications of using either a market consistent or a real-world approach. We also excel in calculating nonmarket and nonfinancial risks.

The importance of embedded value isn't merely in its calculation, but in understanding what company EV means and how it's changing over time. This is where Milliman offers clients particular expertise. We also educate the audiences our clients need to reach: We recently made a joint presentation on what EEV means with an investment bank to a panel of life insurance investors and hedge funds.

With embedded value gaining credence as a calculation method the world over, Milliman is a leading source for industry-best methods and interpretation of embedded value.