Current Topics in Financial Reporting(4页).doc
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Exercises for Day 2 Embedded Values/Appraisal Values Workshop
Question 1 – Risk Discount Rate
Company A is one of the largest life insurance companies in the market.
The management of the company requires the actuarial team to perform an
embedded valuation each year to assist management’s understanding of the
performance of the company in the past year and planning of future business
strategy.
Company A is about to perform the embedded valuation for 2005.
An actuarial student has set the risk discount rate (RDR) for this valuation using
Question 1 – Risk Discount Rate
Company A is one of the largest life insurance companies in the market.
The management of the company requires the actuarial team to perform an
embedded valuation each year to assist management’s understanding of the
performance of the company in the past year and planning of future business
strategy.
Company A is about to perform the embedded valuation for 2005.
An actuarial student has set the risk discount rate (RDR) for this valuation using