Appraisal Values- A Comparison of European and North American Practice

The Valuation of Property-Casualty Companies and Appraisal Value work generally are areas where actuaries are increasingly becoming involved. Appraisal Values are also increasingly being used in mergers and acquisitions many of which are international in nature. There are some differences in approach in the UK, Continental Europe and North America and the paper presents a discussion of the methodological differences in the context of work for acquisitions. Topics covered include the definition of earnings, earnings recognition, risk discount rates, allocation of capital and excess capital, investment policy and the impact of accounting rules and taxation. The main purpose of the paper is to stimulate discussion and future research on an international basis.