Financial Times FT.com

Accounting standards

New valuation approach divides life assurers

By Andrea Felsted and Barney Jopson

Published: July 23 2006 22:03 | Last updated: July 23 2006 22:03

The life assurance industry is divided over whether to move to a more consistent way of valuing life assurance policies, which could potentially cut the profit that some groups make from selling new policies.

Some life assurers have already moved to so-called market consistent embedded value (MCEV), which reflects the worth of in-force policies using market prices to value assets and liabilities. But some of the biggest companies have not adopted the approach.

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