Embedded value reporting quality and credit risk: evidence from life insurance companies

The informational content and relevance to external stakeholders of voluntary financial disclosures by commercial banks is now becoming more widely recognized. For instance, banks voluntary disclosures of liquidity, interest rate and market risk metrics have been bound to be closely associated with market value of equity and credit ratings. So far, there has been very scarce published research on investigating the informational content and relevance to external stakeholders of voluntary financial disclosures by life insurance companies. In order to improve upon this situation, this paper studies and reports the informational content of voluntary embedded value (EV) financial disclosures by Canadian life insurance companies. As opposed to traditional statutory balance sheet and earnings reporting, EV voluntary disclosure attempts to estimate the present value of future earnings generated by a life insurers current book of various insurance businesses. The preliminary results presented in this study indicate that EV voluntary financial disclosures communicate intrinsic informational content and provide value relevance to external stakeholders in the sense that they were found to be closely associated with life insurers market value of equity.

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The Informational Content Of Voluntary Embedded Value (EV) Financial Disclosures By Canadian Life Insurance Companies During The Recent Period Of Market Turmoil

International Business & Economics Research Journal (IBER) ◽

10.19030/iber.v10i4.4179 ◽

2011 ◽

Vol 10 (4) ◽

pp. 1

Author(s):

Jacques Préfontaine ◽

Jean Desrochers ◽

Lise Godbout

Keyword(s):

Life Insurance ◽

Credit Ratings ◽

Market Value ◽

Insurance Companies ◽

Informational Content ◽

Recent Period ◽

Life Insurers ◽

Embedded Value ◽

External Stakeholders ◽

Financial Disclosures

The informational content and relevance to external stakeholders of voluntary financial disclosures by commercial banks is now becoming more widely recognized. For instance, banks voluntary disclosures of liquidity, interest rate and market risk metrics have been found to be closely associated with market value of equity and credit ratings. So far, there has been very scarce published research on investigating the informational content and relevance to external stakeholders of voluntary financial disclosures by life insurance companies during the recent period of market turmoil. In order to improve upon this situation, this paper updates previous findings and reports on the informational content of voluntary embedded value (EV) financial disclosures by Canadian life insurance companies during the 2000-2010 time period. As opposed to traditional statutory balance sheet and earnings reporting, EV voluntary disclosure attempts to estimate the present value of future earnings generated by a life insurers current book of various insurance businesses. The preliminary results presented in this study indicate that recent EV voluntary financial disclosures failed to communicate intrinsic informational content and to provide value relevance to external stakeholders in the sense that they were not found to be closely associated with life insurers market value of equity and credit ratings during the recent 2007-2010 period of market turmoil.

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A Comparative Analysis on Customer Relationship Management in Public Sector and Private Sector Life Insurance Companies

Global Journal For Research Analysis ◽

10.15373/22778160/mar2014/29 ◽

2012 ◽

Vol 3 (3) ◽

pp. 85-87

Author(s):

CATHERINE NIRMALA RAO ◽

Keyword(s):

Comparative Analysis ◽

Public Sector ◽

Private Sector ◽

Customer Relationship Management ◽

Life Insurance ◽

Relationship Management ◽

Customer Relationship ◽

Insurance Companies

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The Effect of Investments and Risk Based Capital (RBC) of Tabarru Funds on Company (Case Study of Sharia Insurance in Indonesia for 2014-2019)

International Journal of Nusantara Islam ◽

10.15575/ijni.v8i1.8933 ◽

2020 ◽

Vol 8 (1) ◽

pp. 87-97

Author(s):

Nana Diana ◽

Tati Apriani

Keyword(s):

Life Insurance ◽

Statistical Tests ◽

Linear Regression Analysis ◽

Sampling Technique ◽

Multiple Linear Regression Analysis ◽

Insurance Companies ◽

Coefficient Of Determination ◽

Verification Method ◽

Investment Returns ◽

The Government

This study aims to examine the influence of investment returns and Risk Based Capital (RBC) Tabarru Funds to the profit of sharia life insurance in Indonesia from 2014-2019. This study The type of this research is quantitative research with descriptive verification as a method. This research method uses descriptive verification method with quantitative approach. The data used in this study were sourced from the financial statements of Islamic life insurance companies in Indonesia for the 2014-2019 period. Then the data obtained were analyzed using multiple linear regression analysis and hypothesis testing consisting of t test and f test with the help of SPSS 21 software. The sampling technique uses non probability sampling with purposive sampling technique. Based on the results of the study it can be seen that the development of investment returns on Sharia Life Insurance in Indonesia has fluctuated and even suffered losses. While the development of Risk Based Capital (RBC) has increased and decreased but overall above 120% as determined by the government. Likewise, the profits earned in each year fluctuate. The results of statistical tests show that investment results partially have a positive effect on profit and Risk Based Capital (RBC) of Tabarru funds partially has a negative effect on profit. Simultaneously investment return and Risk Based Capital (RBC) affect on profit. In addition, the results of the coefficient of determination (R2) were obtained which obtained a value of 81%. This shows that the variable investment returns and Risk Based Capital (RBC) can affect earnings by 81% and the remaining 19% is influenced by other variables not used in this study.

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