2013 was a good year for market performance, with signs of recovery from the financial crisis.

Life insurance companies' embedded values continue to be very sensitive to market performance. Higher reference rates, narrower sovereign debt spreads, improved equity markets and lower volatilities have all contributed to improved returns on embedded value.

Regulatory changes played a significant role in the value of new business over the year and we expect this to continue. We look at how insurers have responded to the regulatory challenges they are currently facing.

We continue to observe improving market sentiment towards the life insurance industry, and we explore in greater depth the market's view of the industry.

This report also highlights any similarities or differences in approach used by the companies in our sample and any changes undertaken to align the current approaches to the latest Solvency II developments, now that there is more certainty around the regulation.

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Market Consistent Embedded Value - Solid growth amid a changing regulatory landscape (PDF)

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