Valuation Premium

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Dictionary Says

Definition of 'Valuation Premium'

The rate set by a life insurance company based on the value of the company's policy reserves. The valuation premium is calculated by an insurance company. The company ensures that, first and foremost, it has adequate policy reserves to cover payouts. Once the value of the policy reserves is determined, the insurance company can calculate the valuation premium that will cover its liabilities. In this manner, the insurance company can make sure that it will have the assets necessary to cover all of its policies.
Investopedia Says

Investopedia explains 'Valuation Premium'

A valuation premium is a life insurance calculation that bases charges for premiums on the company's liabilities. At times, an insurance company may opt to set a premium that is lower than the calculated valuation premium if their experience and statistical records indicate that a lower premium is justified. In the event that a lower premium is charged, the insurance company would be obligated to hold the difference in a deficiency reserve.
Search results for

'Valuation Premium'

  • Conglomerates: Cash Cows Or Corporate Chaos?

    http://www.investopedia.com/articles/basics/06/conglomerates.asp
    ... That said, some conglomerates do command a valuation premium - or at least a slim
    conglomerate discount. These are extremely well-run companies. ...

  • Mergers and Acquisitions: Valuation Matters | Investopedia

    http://www.investopedia.com/university/mergers/mergers2.asp
    ... That means buyers will need to pay a premium if they hope to acquire the
    company, regardless of what pre-merger valuation tells them. ...

  • Equity Valuation In Emerging Markets

    http://www.investopedia.com/articles/fundamental-analysis/11/evaluating-stocks-in-emerging-markets.asp
    ... method suggested by the CFA Institute is to look at the premium in the ... The last piece
    of the valuation puzzle, much like with forms from developed economies ...

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

    http://www.investopedia.com/exam-guide/series-26/variable-contracts/types-variable-annuities.asp
    ... Variable Contracts - Types and Valuation of Variable Annuities. ... Deferred Annuity
    Types of deferred variable annuities include single-premium deferred and ...

  • Calculating The Equity Risk Premium

    http://www.investopedia.com/articles/04/020404.asp
    ... Clearly, this is just a guess! If we could predict valuation changes, the full
    form of the equity risk premium model would read as follows: ...

  • The Equity-Risk Premium: More Risk For Higher Returns

    http://www.investopedia.com/articles/04/012104.asp
    ... if you start with an assumption that the market's current valuation is approximately ...
    or earnings or earnings per share growth), a real equity premium of 4 or 5 ...

  • CFA Level 1 Study Guide - Portfolio Management - The Risk Premium ...

    http://www.investopedia.com/exam-guide/cfa-level-1/portfolio-management/risk-premium.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 ...

  • Rackspace Has Already Racked Up A Demanding Valuation

    http://stocks.investopedia.com/stock-analysis/2012/Rackspace-Has-Already-Racked-Up-A-Demanding-Valuation-RAX-AMZN-GOOG-HPQ-MSFT0216.aspx
    ... Unfortunately, the company has a valuation to match and it's joined the ranks ... in
    buying in larger volumes than most customers and charging premium prices for ...

  • An Investing Lesson From The BP Spill

    http://stocks.investopedia.com/stock-analysis/2010/An-Investing-Lessons-From-The-BP-Spill-BP-CCJ-ECA-ORA0630.aspx
    ... worldwide. Ormat currently trades at a valuation premium relative to its peers,
    with aP/E multiple of 25 compared to 12 for the industry. ...

  • Equity Valuation In Good Times And Bad

    http://www.investopedia.com/articles/fundamental-analysis/09/equity-valuation-good-bad.asp
    ... Finally, the equity risk premium is not constant. ... (For more on DCF, see our related
    article DCF Valuation: The Stock Market Sanity Check.). ...

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