Embedded value

Embedded value is a financial measure used by insurance companies to estimate the total value of their business. It combines the current value of the company's existing insurance policies and assets with the projected profits from future policies they expect to sell. Essentially, it provides a picture of the company's worth based on both what it has already accumulated and what it can potentially earn in the future. This helps investors and management assess the company's overall financial health and growth prospects beyond just current earnings.