Adjusted Net Worth
 |
Definition of 'Adjusted Net Worth'A method for valuing an insurance company using capital values, surplus values, and an estimated value for business on the company's books. You start with the estimated value for business and add unrealized capital gains, the capital surplus and the voluntary reserves. |
 |
Investopedia explains 'Adjusted Net Worth'As the adjusted net worth represents a measure of value of an insurance company, it is a useful way to compare the company's relative value to other insurance companies. The word "adjusted" in the phrase is a clue that it is meant to reflect economic value which can be compared between multiple firms. It is common to standardize values that are generated from the financial statements to use in analyzing an industry. Then a particular company's relative value can be compared within that industry. |
Related Definitions
Articles Of Interest
-
Digging Into Book Value
This calculation will serve up your portion of the shareholder pie. -
Relative Valuation: Using Stocks To Value Other Stocks
This effective approach will help you understand which stocks you should be investing in. -
The History Of Insurance In America
Insurance was a latecomer to the American landscape, largely due to the country's unknown risks. -
Valuing Private Companies
You may be familiar with publicly-traded companies, but how much do you know about privately-held firms? -
How To Choose The Best Stock Valuation Method
Don't be overwhelmed by the many valuation techniques out there - knowing a few characteristics about a company will help you pick the best one. -
Relative Valuation Of Stocks Can Be A Trap
This method of valuing a company can make it look like a bargain when it is not. -
Book Value: How Reliable Is It For Investors?
In theory, a low P/B ratio means you have a cushion against poor performance. In practice, it is much less certain. -
The History Of Insurance
The first written policy appeared in Hammurabi's Code. Find out how it evolved from there. -
How are realized profits different from unrealized or so-called "paper" profits?
When buying and selling assets for profit, it is important for investors to differentiate between realized profits and gains, and unrealized or so-called "paper profits".Simply put, realized ... -
What are unrealized gains and losses?
An unrealized loss occurs when a stock decreases after an investor buys it, but he or she has yet to sell it. If a large loss remains unrealized, the investor is probably hoping the stock's fortunes ...
Free Annual Reports