Abstract: There are some major frameworks within value based management system. This paper analyses the two most basic approaches – economic value added (EVA) and discounted cash flows (DCF) techniques – that are used to measure value creation of companies. These models are frequently applied in company’s valuation and investment project valuation. EVA and NPV measures are consistent with the maximization of the value of the company. Investments, cash flows, economic life and capital cost are financial market’s actuality, where value and profitability should be measured. Therefore DCF models are applied there and companies’ economic data can be obtained from here. Each investment is evaluated of future decisions over its useful life based on the expected cash flows. The result is net present value (NPV) and a positive NPV show that investment creates value. EVA is calculated over a defined calendar period. It measures an entire company’s current economic performance. A positive EVA signals value creation. The concept of NOPAT is basic to both approaches. Each approach requires a variety of adjustments to the accounting information. Although DCF and EVA approaches can provide the same present value expression, there are differences between these approaches. Some of them are technical and therefore NPV analysis is the business analysts’ preferred method to estimate value and to make long-term decisions.

Abstract: A method and mechanism that protect a person with a property interest in a piece of real property against a loss of expected future market value of the real property. A policyholder may first select an expected future market value for the real property and a time period in which the expected future market value is to be attained (e.g., 10 years). An insurer may model relevant conditions, factors and events that effect property values over time for a particular geographic region. A premium may be determined based on the selected expected future market value and the determination of expected future market value made by the insurer. Upon a conveyance of the real property at the time period or window specified, a loss may be determined if the fair market value of the real property is less than the selected expected future market value.

Abstract: 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.

Abstract: The origins of the Economic Value Added comes from Hamilton (1877) and Marshall (1890), which showed that companies can create wealth if you manage to earn more than their own capital costs and liabilities. Economic Value Added is an indicator for measuring performance based on real economic profits of the company product, which allows measurement of its success or failure over a period of time is useful to investors who wish to determine how well the product has value to them and can be used for comparative analysis with rapid industrial similar.

Abstract: In this article, we analyze the asset and liability management and market risk systems of insurance companies. We discuss that the current system is not goal congruent and does not satisfy necessary conditions for effective control. It follows that managers are unable to run their business effectively. We develop a transfer pricing system that allows the clear separation of underwriting and investment activities, both on the risk and return aspects. It creates the appropriate incentive schemes. We illustrate this system with an example indicating the differences in incentives between the traditional embedded value measures and the proposed funds transfer pricing system.

Abstract: As academic entrepreneurship develops, questions of business valuation of research become more important. Therefore, there is a need to develop methods for value assessment of academic research. Conventional business valuation models for technology are usually financially oriented and will only disclose its economic value. However, this under specifies the value of university-industry transactions. The value of an invention not only depends on economic value but also on strategic, cultural or social value added to the applicant of the invention: usually a company. We introduce gross business value, being a function over time of these four dimensions of value and propose to position this gross business value of an academic technological invention within a three-dimensional model, with the research value creation process on the X-axis, the type of research on the Y-axis and its contribution to the applicant's four types of capitals at the Z-axis.

Abstract: The recent global financial crisis and worst recession since the Great Depression underscore the theoretical and practical importance of defining requirements for assessing alternative theories of capitalism. The expressed goal of Freeman and his co-authors is to replace value-allocating ‘shareholder capitalism’ with value-creating ‘stakeholder capitalism.’ Each theory combines a different value proposition and principal-agent conception. So interpreted, the value creation proposition suggests two requirements for assessing alternative theories. A proposed better theory of capitalism should demonstrate first practicality of prescriptive guidance for managers and second superiority of its embedded value proposition for sustainable long-term performance. Shareholder and stakeholder conceptions are not the only approaches to developing a theory of capitalism embedding a different value proposition and agency model. Two other conceptions suggest organisational wealth and corporate social responsibility (CSR) theories of capitalism. All four alternatives meet the relatively minimal requirement of practicality. Freeman and his co-authors argue the value creation proposition will outperform the value allocation proposition. But organisational wealth and CSR theories may also outperform shareholder capitalism. Demonstrating that stakeholder capitalism will outperform organisational wealth and CSR theories depends on which principal and value proposition one judges most important in particular conditions.

Abstract: A corporate owned life insurance product with death benefits (COLI-DB) that has no cash value and is minimally funded. The policy holder selects an election to mark to market accounting for life insurance. Thus, the COLI-DB has no cash surrender value. The net present value of the COLI-DB can be more than zero (and quite high) so there is no impact to net income and there may even be net income in the first year. The COLI-DB system may optimize returns by using new accounting rules in contrast to the traditional approach of COLI-CV, and returning death benefits through a captive to increase returns.

Abstract: Purpose That value is created “in use”, as opposed to embedded in products, is a foundational premise of the servicedominant logic; however, the assessment of customer perceived value-in-use has not been explored. As servitization pervades manufacturing, suppliers are challenged to assess customer perceived value for integrated product-service systems (PSS). This paper proposes a new framework for assessment of perceived value of hybrid product-service offerings. Design/methodology/approach The framework developed from literature is supported by exploratory research (ten interviews across a dyad in a maintenance context). The framework includes assessment of supplier attributes: product, service and relationship delivery, as well as value created by the supplier‟s business networks. In contrast to the value models which have been subject to previous empirical research, the framework also includes assessment of the quality of the customer‟s product/service processes. Findings This research illustrates the superiority of our new value-in-use framework over existing embedded-value, supplier-attribute based measures of perceived value. We find that value-in-use - the achievement of customers‟ goals, purposes and objectives - can be elicited; it is however, processual, is co-created by supplier-customer interaction, and emerges during consumption. In comparison to traditional embedded value measures, our framework assesses value in the customer‟s space and makes explicit underlying motivations.

Abstract: The present disclosure includes devices, methods, and systems for determining the strategic value of a life insurance strategy at a future point in time. One device embodiment can include a processor, a memory coupled to the processor, and program instructions stored in the memory and executable by the processor to perform a statistical sampling method to determine a strategic value of a life insurance strategy at a number of particular future points in time using a death benefit value of a life insurance policy, a cash surrender value of the policy, a mortality probability for an insured subject of the policy, and a projected investment return on a reinvestment of the death benefit value, at each of the number of particular future points in time.

Abstract: The fair value criterion is an evaluation method based on the supposition that the values expressed in the balance sheet reflect in every moment their exchange value at the acquisition date, date at which the fair value and the historical cost are the same. But, in the following periods, the value of the assets and liabilities exposed in the balance sheet is adjusted to a value equivalent to the value with which the asset can be exchanged of the liability estimated, through a free transaction, between 2 fully-aware parties, willing to make this operation. So, the exposed values based on the fair value are current values, which might correspond to it in the conditions of a possible sale at that time. Certainly they are very useful values to the balance sheet users, because they allow the approach to the entity’s economical capital quantification. The problem is that the fair value quantification may not be credible for all the posts in the balance sheet, because this parameter is often less likely to be documented about, or certain assets or liabilities do not have a market on which to obtain real quotations.The definition of the fair value is based on the supposition that an entity, in conditions of economical continuity, has no intention or necessity for liquidation, and as such is not interested in reducing relevantly its operations in disadvantageous conditions.

Abstract: Bank-owned life insurance is an increasingly popular tool used by banks to fund the compensation and benefit plans that banks provide to their executives. Assets held within bank-owned life insurance (BOLI) policies now exceed $126 billion and thanks to its tax-efficient status, these policies will likely remain a core investment for banks for the foreseeable future. These policies can be further enhanced using stable value protection (SVP) which allows banks to apply book-value accounting to their investment. Using a Monte-Carlo-based stochastic interest rate model, the paper explores the risk profile and sensitivities of the most common stable value swaps and proposes several simple design innovations which can be tailored to improve the risk profile for both the issuer and purchasers.

Abstract: Value and value uncertainty are increasingly recognized as the approp riate metrics for system design and acquisition. Value, unlike cost or performance, is not an endogenous characteristic of a system but an information -intensive metric characterizing a system in relation to its environment, its stakeholder, and its technic al attributes. I n uncertain environments, decision making at the system -level should be value -based, or at a minimum value -informed. This value centric mindset is an emerging paradigm for system design and acquisition, and it follows the performance -centri c mindset of the Apollo era, and the cost -centric or cost -effectiveness mindset. Several challenges remain to be addressed for a convincing and broad adoption of a value centric approach to system design and acquisition. One challenge in particular is rela ted to the multi -scale nature of the concept of value, a nd the linkage between value at the engineering system level and value at the corporate level (or the organization that is acquiring the system for example). For companies, at the senior management le vel, the corporate imperative dictates the focus on and creation of value for shareholders. At the engineering level, program managers strive to create best lifecycle value systems. The challenge is to understand value at the system level in the context of value at the corporate level, and link the former to the latter. In this paper, we focus on value at the corporate level and bring some of its different aspects to an engineering audience. In particular, we discuss and analyze the book value and market v alue of several aerospace and defense companies. We introduce for these companies Value Maps and Hybrid Value Trajectories, which display and track their value(s) and value dynamics between 2004 and 2008. We develop a corporate value scorecard, which inclu des in addition to the value trajectory, accounting and financial indicators for these companies collected from their 10 -K filings with the Securities and Exchange Commission (SEC) and other financial information sources. Interpreting the information in t hese scorecards sets the foundation for establishing a quantitative connection between value at the corporate level and value at the system level. This work complements a companion paper that focuses on value at the system level and is entitled, “Beyond Cos t and Performance, a Value -Centric Framework and Pareto Optimization for Communication Satellites.”

Abstract: This paper is about research towards the design of a start-up organization “OpDieFiets.nl”. The start up focuses on market demand for quality bicycles at the lowest price possible for the Dutch market. Theories around innovation and value systems form the background of designing the organization. The 3C value flow model currently in development defines the core value drivers for enterprises and is used to pre-design the value system for OpDieFiets.nl. Four other start-up companies were investigated with help of the 3C value flow model to define the value system for OpDieFiets.nl.

Abstract: Life insurance contracts are often very complex financial products which embed interest rate guarantee and other implicit options. Focusing on the With-Profit life insurance policy in China, this paper presents a dynamic model to develop suitable fair valuation techniques for liability of this category contract. Unlike traditional actuarial valuation method, the model captures several essential elements of With-Profit policy, such as interest rate of return guarantee, annual bonus option and terminal bonus option. Based on the classical contingent claim pricing theory, Monte Carlo techniques are used to calculate the values of these options. The numerical results obtained show that the liability value of With-Profit policy is highly sensitive to changes in model parameters, especially for bonus strategy and interest rate of return guarantee. Keywords-embeded options; bonus strategy; insurance liability; fair value; guarantee.

Abstract: In the framework of Embedded Value new standards, namely the MCEV norms, the latest principles published in June 2008 address the issue of market and underwriting risks measurement by using stochastic models of projection and valorization. Knowing that stochastic models particularly data-consuming, the question which can arise is the treatment of insurance portfolios only available in aggregate data or portfolios in situation of incomplete information. The aim of this article is to propose a pragmatic modeling of these risks tied up with death covers of individual protection products in these situations.