PVNBP

PVNBP

PVNBP is Present value of new business premiums. This is a term used in insurance to indicate the present value of total sales (premiums) confirmed to receive from present to future.

It will be the sum of single premiums and present value of recurring premiums (e.g.,: life insurance premiums paid year after year). PVNBP makes it compare the sales of 2 companies having both single premiums and recurring premiums. In a way it is does the reverse of what Annual premium equivalent (APE) does, i.e., converts recurring income to a single number (APE converts single premium to recurring value) [ [http://moneyterms.co.uk/pvnbp-present-value-of-new-business-premiums/ PVNBP ] ]

Related categories

* Insurance
* Annual premium equivalent
* European embedded value (EEV)

References


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  • Annual premium equivalent — (APE) is used for comparison of cost by determining what the price would be if paid once for a year s period. This is particularly used when the sales contain both single premium and regular premium business. This is used in insurance industry to …   Wikipedia

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