Abstract
With SFAS 115, insurers are now in the awkward situation where almost half of the balance sheet is marked to market. This has created a material inconsistency with the way liabilities are reported and thus diminished the usefulness of financial reporting to shareholders and potential new investors. Also, the risk-management tool of value-at-risk measurement, which has been the domain of our large banking institutions, is beginning to filter into the insurance industry. The key underpinning of such a process is an appropriate market-valuation process. This chapter endeavors to advance practice and methodology in all these areas.
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Girard, L.N. (2000). Market Value Of Insurance Liabilities And The Assumption Of Perfect Markets In Valuation. In: Vanderhoof, I.T., Altman, E.I. (eds) The Fair Value of Insurance Business. The New York University Salomon Center Series on Financial Markets and Institutions, vol 5. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-4623-8_1
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DOI: https://doi.org/10.1007/978-1-4615-4623-8_1
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