Calculating Market Value Margin (MVM) using the Cost of Capital method

Follow the link below for a detailed treatment of MVM for the Solvency Capital requirement (SCR) with ICRFS-Plus, incorporating the concepts of Fair Value and Cost of Capital. In particular we show the difference between a one-year and an ultimate horizon, at a given solvency level. Solvency II mandates a one-year horizon at the 99.5% level.

An ICRFS-Plus Excel Macro can be downloaded from the same page, which enables ICRFS-Plus users to apply these calculations to their own data.

For a detailed description of MVM Calculator information click here.

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