PDSnet Glossary

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Definition

<p style="text-align: justify;" data-mce-style="text-align: justify;">Thi is an insurance term which means the current value of future <span style="border-bottom: 1px dotted black; cursor: pointer;" data-mce-style="border-bottom: 1px dotted black; cursor: pointer;" class="glossary">earnings</span> plus <span style="border-bottom: 1px dotted black; cursor: pointer;" data-mce-style="border-bottom: 1px dotted black; cursor: pointer;" class="glossary">net asset value</span> (NAV). Embedded value approximates the value of the <span style="border-bottom: 1px dotted black; cursor: pointer;" data-mce-style="border-bottom: 1px dotted black; cursor: pointer;" class="glossary">shareholder</span>'s interest in the <span style="border-bottom: 1px dotted black; cursor: pointer;" data-mce-style="border-bottom: 1px dotted black; cursor: pointer;" class="glossary">company</span> - and so can be compared with the current <span style="border-bottom: 1px dotted black; cursor: pointer;" data-mce-style="border-bottom: 1px dotted black; cursor: pointer;" class="glossary">share</span> <span style="border-bottom: 1px dotted black; cursor: pointer;" data-mce-style="border-bottom: 1px dotted black; cursor: pointer;" class="glossary">price</span>. Some <span style="border-bottom: 1px dotted black; cursor: pointer;" data-mce-style="border-bottom: 1px dotted black; cursor: pointer;" class="glossary">insurance companies</span> calculate a return on embedded value as a measure of <span style="border-bottom: 1px dotted black; cursor: pointer;" data-mce-style="border-bottom: 1px dotted black; cursor: pointer;" class="glossary">profitability</span>. </p>