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dc.contributor.authorHölscher, Luiseen_US
dc.contributor.authorHarding, Perhamen_US
dc.contributor.authorBecker, Gernot M.en_US
dc.description.abstractIn May 2004 the CFO Forum harmonized the various efforts of reporting the embedded valueof life insurance companies by issuing the European Embedded Value (EEV) Principles.In this working paper a methodology is proposed to derive a maximum lending amountfrom EEV figures without much additional data requirements from the originating insurer. The approach chosen is similar to that of other financing areas, e.g. real estate finance, where first a prudent best estimate valuation is done and later risk deductions are performed in the form of applying loan to value ratios, e.g. 60-80 % of the prudent amount. Here, this prudent value is called bankable embedded value and the loan to value analysis presented leads to the maximum lending amount. The deductions proposed to arrive at a maximum lending amount are based on parameter adjustments and risk allowances for unexpected risks. There is an analogy with insurers for determining their own capital needs. The methodology proposed is based on the stress test approach which increasingly gains popularity with insurance supervisors in Europe.en_US
dc.publisher|aHfB - Business School of Finance & Management|cFrankfurt a.
dc.relation.ispartofseries|aArbeitsberichte der Hochschule für Bankwirtschaft|x64de
dc.subject.keywordEuropean embedded valueen_US
dc.subject.keywordembedded valueen_US
dc.subject.keywordlife insurance policiesen_US
dc.subject.keywordmaximum lending amounten_US
dc.subject.keywordrequired capitalen_US
dc.subject.keywordrisk analysisen_US
dc.subject.keywordrisk discount rateen_US
dc.subject.keywordvalue reporting and analysisen_US
dc.subject.keywordvalue sensitivity analysisen_US
dc.titleFinancing the embedded value of life insurance portfoliosen_US
dc.type|aWorking Paperen_US

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