European embedded value

European Embedded Value (EEV) is a standardised calculation of embedded value and related numbers that is being adopted by European insurance companies to make their results more meaningfully comparable.

The EEV principles provide consistent definitions, actuarial assumptions and disclosure requirements for EEV.

Although EEV provides a tighter set of rules and more consistency between companies, it still leaves a number of important decisions (such as risk premiums to be used) to individual companies. Given the complex nature of insurance accounts, investors should not expect this to mean that comparisons are now easy.

A key part of EEV is a uniform method of comparing new business premiums: PVNBP.