Actuarial Valuation

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Dictionary Says

Definition of 'Actuarial Valuation'

An actuarial valuation is a type of appraisal which requires making economic and demographic assumptions in order to estimate future liabilities. The assumptions are typically based on a mix of statistical studies and experienced judgment. Since assumptions are often derived from long-term data, unusual short-term conditions or unanticipated trends can occasionally cause problems. 
Investopedia Says

Investopedia explains 'Actuarial Valuation'

A common example where an actuarial valuation is in the valuation of a pension fund. It is usually easy to value a pension fund's assets because they primarily hold liquid securities such as stocks and bonds. However, it can be very difficult to value the liabilities of a pension fund. First, assumptions must be made to determine the total value of pension payouts that must be made in the future. Second, assumptions must also be made as to the expected growth of the fund's assets which will allow it to meet those obligations. If either set of assumptions proves to be significantly off, then there might be too little (or too much) funds in the future to pay pension benefits.
Search results for

'Actuarial Valuation'

  • Series 6 Study Guide - Variable Contracts - Valuation of Variable ...

    http://www.investopedia.com/exam-guide/finra-series-6/variable-contracts/valuation-variable-annuities.asp
    ... Variable Contracts - Valuation of Variable Annuities. ... The rate of exchange from
    accumulation units to annuity units is determined by an actuarial formula that ...

  • Series 26 Study Guide - Variable Contracts - Types and Valuation ...

    http://www.investopedia.com/exam-guide/series-26/variable-contracts/types-variable-annuities.asp
    ... Valuation of Variable Annuities Accumulation Phase The accumulation phase is the
    period ... units to annuity units is determined by an actuarial formula that takes ...

  • Insure Your Future With A Career As An Actuary

    http://www.investopedia.com/articles/financialcareers/08/career-in-actuary.asp
    ... provide basic education in the fundamental principles of actuarial science,
    professional ... such as investment, financial analysis and the valuation of insurance ...

  • The Defined-Benefit Plan's Many Problems

    http://www.investopedia.com/articles/retirement/10/demise-defined-benefit-plan.asp
    ... date would then have to be discounted back 44 years to today's valuation date ... of
    money, the Company ABC DB plan would be fully funded from an actuarial point of ...

  • Financial Designations That Employers Require - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0112/Financial-Designations-That-Employers-Require.aspx
    ... quantitative analysis, financial markets and products, and valuation risk models ...
    Actuarial Practice Actuaries manage property and casualty liabilities, life ...

  • CFA Level 1 Study Guide - Liabilities - Post-Retirement ...

    http://www.investopedia.com/exam-guide/cfa-level-1/liabilities/post-retirement-obligations.asp
    ... Misstated Inventory; 8.6 Inventory Valuation; 8.7 Inventory Analysis; 8.8
    Converting LIFO to FIFO; 8.9 Converting FIFO to LIFO; 8.10 ...

  • CFA Level 1 Study Guide - Liabilities - Accounting For Long-Term ...

    http://www.investopedia.com/exam-guide/cfa-level-1/liabilities/long-term-liabilities-accounting.asp
    ... Misstated Inventory; 8.6 Inventory Valuation; 8.7 Inventory Analysis; 8.8
    Converting LIFO to FIFO; 8.9 Converting FIFO to LIFO; 8.10 ...

  • Financial Statements: Pension Plans | Investopedia

    http://www.investopedia.com/university/financialstatements/financialstatements9.asp
    ... and the additional cost would show up as an actuarial loss. ... a firm that conducts
    quantitative research, consulting (derivatives valuation), litigation support ...

  • Passing the Buck: The Hidden Costs of Annuities

    http://www.investopedia.com/articles/retirement/02/031302.asp
    ... Underwriting These fees go to those who take actuarial risk on the benefits. ... to your
    kids, the IRS allows them to take advantage of a step-up valuation, or the ...

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