Life insurance is a kind of long-term liability management, which will introduce preset mortality rate, serious illness rate, policy acquisition cost and return on investment into the pricing of insurance products. In the actual operation process, the insurance company provided a lot of compensation for customers and paid a lot of sales expenses and other accounting expenses for salesmen. However, in accounting, as long as the contract did not expire, the insurance company could not recognize it as profit. Obviously, it is impossible to accurately evaluate the value of insurance companies only by profit, so there are special indicators such as embedded value and new business value to evaluate life insurance companies.
The above is a superficial introduction. The specific study of EV and NBV can focus on the relevant interpretation of listed insurance companies, which is believed to help you become more familiar with it.