Corporate valuation : the study of life insurance companies in Thailand | |
| Author | Preecha Vichitthamaros |
| Call Number | AIT Diss no.SM-02-03 |
| Subject(s) | Corporations--Valuation--Thailand Insurance, Business--Thailand Corporations--Valuation--Thailand Insurance, Business--Thailand |
| Note | A dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy, School of Management |
| Publisher | Asian Institute of Technology |
| Abstract | The purposes of this dissertation are to study the methods used for valuing life insurance companies and to propose the valuation methods for valuing life insurance companies in Thailand. The study focuses on the concepts of the embedded value and the appraisal value. The values are mainly used, especially in the United Kingdom, as the measurements of the company's performance. The embedded value is the sum of the adjusted net worth and the value of in-force business. While the appraisal value can be obtained by adding the embedded value with the value of new business. Using the concepts of embedded value and appraisal value, the study proposes the calculation methods that can be applied in valuing life insurance companies in Thailand. The methods are developed under the condition that they are applicable for an outsider of life insurance companies to employ. The methods can be applied by using only data and information in the annual reports published by the Department of Insurance. The study proposes one method to determine the value of adjusted net worth and one method to determine the value of new business. Two methods, called the constant profit valuation and the projected cash flow valuation, are proposed to calculate the value of in-force business. The former method is easier to apply and it is appropriate when the proportion of benefit payments to premiums in each year is stable. If the proportion fluctuates from year to year, the projected cash flow valuation should be used. To apply the projected cash flow valuation, the study suggests using the distributed lag model to predict the benefit payments. This study also proposes one method to determine the discount rate by applying the insurance capital asset pricing model. |
| Year | 2002 |
| Type | Dissertation |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Doctor of Philosophy in Business Administration (Publication code = DBA-SM, SM) |
| Chairperson(s) | Swierczek, Fredric W.;Gupta, Jyoti P.;Swierczek, Fredric William;Gupta, Jyoti P.; |
| Examination Committee(s) | Deussen, Arne; Haddawy, Peter F.; Korp Kritayakirana;Dickinson, Gerard Michael ; |
| Scholarship Donor(s) | Royal Thai Government (RTG); |
| Degree | Thesis (Ph.D.) - Asian Institute of Technology, 2002 |