The fair value of insurance liabilities / edited by Irwin T. Vanderhoof and Edward I. Altman.

Format:

Book

Contributor:

Vanderhoof, Irwin T.

Altman, Edward I., 1941-

James A. Crawford Memorial Fund.

Series:

New York University Salomon Center series on financial markets and institutions ; v. 1.

The New York University Salomon Center series on financial markets and institutions ; v. 1

Language:

English

Subjects (All):

Insurance companies--Valuation--United States.

Insurance companies.

Fair value--Accounting.

Fair value.

Insurance companies--Valuation.

United States.

Physical Description:

xviii, 380 pages : illustrations ; 25 cm.

Place of Publication:

Boston : Kluwer Academic, [1998]

Summary:

This book explores theoretical and practical implications of reflecting the fair value of liabilities for insurance companies. In addition, the contributions discuss the disclosure of these values to the financial and regulatory communities and auditing firms which are actually calculating this illusive but important variable. It combines contributions by distinguished practitioners from the insurance, accounting and finance fields, with those of prominent academics. One of the central themes of the collection is that adequate disclosure of the true economic value of insurance company liabilities is both possible and desirable. Wherever possible, the insurance valuation process is wedded with modern financial theory. For example, the use of option pricing theory is applied to insurance companies, where the true value of the firm's liabilities is a critical variable. Methods such as cash flow, earned profit and indirect discount are explored.

Contents:

1. Background on fair value accounting of insurance company assets and liabilities / Robert C. Wilkins 1

2. Comparison of methods for fair-value life insurance liabilities / Arnold A. Dicke 7

3. Fair valuation of life insurance company liabilities / Douglas C. Doll et al. 21

4. Experience in implementing fair value of insurance liabilities / Dennis L. Carr 127

/ J. Peter Duran 133

/ Joseph E. Crowne 137

5. Allowing for asset, liability, and business risk in the valuation of a life company / Shyam J.B. Mehta 143

6. A market-value accounting framework for insurance companies / Mark Griffin 201

7. Option adjusted value of the firm / David N. Becker 215

8. The cash flow method for valuing liabilities in Canada / Allan Brender 297

9. The derivation and application of accounting standards to the market value of liabilities / Christopher D. O'Brien 303

The indexed discount rate method for fair valuation of liabilities / S. Michael McLaughlin 331

Is Paul vs. Virginia dead? / Krzysztof M. Ostaszewski 351.

Notes:

Includes bibliographical references and index.

Local Notes:

Acquired for the Penn Libraries with assistance from the James A. Crawford Memorial Fund.

ISBN:

0792399412

OCLC:

36917045