Definition of 'Appraisal Value'
Definition: Appraisal value is used to measure the value of an insurance company. It is also known as actuarial appraisal value.
Description: Appraisal value includes:
1. Present Value of existing business, also called Embedded Value 2. Value of new business, that is the present value of the future business profits 3. Adjusted book value
Appraisal value takes into account expected earnings from new policies in future.
Also See: Return, Annuity, Insurable Interest, Insurability