How the Stock Market may view Market Consistent Valuations John Hele, Deputy CFO ING Group. Market-consistent Valuation of Insurance Contracts 2nd November 2006. Key points to make. Investors and analysts are not satisfied with current disclosure by insurers
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How the Stock Market may view Market Consistent ValuationsJohn Hele, Deputy CFO ING Group
Market-consistent Valuation of Insurance Contracts
2nd November 2006
this question may be
illustrative of the general
opacity of reporting in the
See also the comments in
relation to slide 5.Investors find reporting Opaque
Which valuation metrics do you find most useful in valuing insurance stocks?
(Participants were allowed three responses)
Has ‘European Embedded Value’ reporting improved the transparency
and compatibility of life insurers’ reporting?
One question that we maybe should have (but failed to) include in our survey would have concentrated on investors’ ‘satisfaction’ with the quality of current reporting. If we had asked such a question, we suspect that most investors would have been critical of reporting.
It is against this background that the answers to the questions here should be judged. The majority of respondents believe that EEV has ‘somewhat’ improved reporting – but we do not think that this should be interpreted as investors yet being satisfied with the quality of reporting.
Legal & General
Example: AXA Capital
Geographic diversification benefits: -35%
Sum of Economic
Capital of local operations
Sum of Segments’