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8. Actuarial Appraisal Value One of the primary goals of the actuarial appraisal is to provide enough information for potential investors to make informed judgments as to the potential value of a property. The components of value typically presented in an actuarial appraisal include: • the adjusted book value (ABV) • the value of existing business • the value of new business While these elements are important indicators of value (and of the seller’s expectations), they do not necessarily represent the value of a transaction in the open market. Each of these elements is considered in more detail below. 8.1 Adjusted Book Value The ABV is calculated to determine the value of a company’s net capital and surplus at current estimated-asset market values and includes the capital held in the opening model balance sheet. The adjustments are intended to eliminate possible accounting differences that over-or understate capital and surplus. In situations where capital infusions are required, this ...