Reporting on the Financial Performance of Life Insurers
The financial crisis has also affected the credibility of financial institutions' financial reporting. Life insurers, like other financial institutions, therefore, need to revamp their reporting to the investment community. The quality of reporting would benefit from explicit forward-looking statements, less emphasis on precision and more on ranges of possible outcomes and worst cases, and an increase in reporting frequency. Furthermore, internal and external financial reporting needs to be better aligned. Market-consistent fair value is defended as the preferred basis to measure assets, liabilities and earnings. As no single reporting view can provide a comprehensive picture, various views could be publicised. In addition to International Financial Reporting Standards fair value (phase II), Market-Consistent Embedded Value and Value of New Business, a third complementary view, labelled Source of Profit Analysis is proposed. This view is already used by many life insurance managers, and thus could help to better align external and internal reporting. The Geneva Papers (2009) 34, 228–241. doi:10.1057/gpp.2009.6
Volume (Year): 34 (2009)
Issue (Month): 2 (April)
|Contact details of provider:|| Web page: http://www.palgrave-journals.com/|
|Order Information:|| Postal: Palgrave Macmillan Journals, Subscription Department, Houndmills, Basingstoke, Hampshire RG21 6XS, UK|
Web: http://www.palgrave-journals.com/pal/subscribe/index.html Email:
When requesting a correction, please mention this item's handle: RePEc:pal:gpprii:v:34:y:2009:i:2:p:228-241. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Iulia Badea)
If references are entirely missing, you can add them using this form.