# Insurance Life Developed Value

> Valuation criteria for developed market life insurance using Embedded Value (EV) methodology. EV Multiple 0.6-1.0x, PVFP + ANAV calculation, and why P/E is unreliable for life insurers.

- Skill: `fdu-ins/insurance-life-developed-value` (Agent Skill)
- Install (CLI): `npx skillmds@latest add fdu-ins/insurance-life-developed-value`
- Raw SKILL.md: https://api.skillmd.com/api/skills/fdu-ins/insurance-life-developed-value/raw
- Safety review: pending
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: Coding & Dev Tools
- Author: FDU-INS (https://skillmd.com/u/fdu-ins)
- Updated: 2026-09-10
- Page: https://skillmd.com/skills/fdu-ins/insurance-life-developed-value

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# Life Insurance — Developed Markets Value Strategy

**Primary Method:** Embedded Value (EV) Multiple + New Business Value

## Key Metrics

| Metric | Formula/Target | Interpretation |
|--------|------------------|-----------------|
| **Embedded Value (EV)** | PVFP + ANAV | PVFP = Present Value Future Profits; ANAV = Adjusted Net Asset Value |
| **EV Multiple** | Price/EVPS | 0.6-1.0x typical for mature insurers (conservative) |
| **PVFP (Value in Force)** | NPV of profits from current policies | Declining as in-force book runs off |
| **Adjusted Net Asset Value** | Capital + Surplus adjusted to market | Balance sheet valuation |
| **New Business Contribution** | Annual profit from new policies written | Sustainability of EV growth |

## Why Embedded Value for Life Insurance

- EPS/P/E ratio highly distorted by: accounting depreciation, one-time gains, policy surrenders
- MCEV (Market Consistent Embedded Value) provides clearer picture of shareholder value creation
- Common in Europe and Asia; less used in North America

## Valuation Process

1. Calculate EV (PVFP + ANAV)
2. Compare P/EV multiple to peers and historical average
3. Assess sustainability: Is EV growing or declining?
4. Examine new business profitability (profitable growth = multiple expansion potential)