A Net Premium Valuation is an actuarial calculation, used to place a value on the liabilities of a life insurer.
Background
It involves calculating a present value for the contractual liabilities of a contract, and deducting the value of future premiums. Both contractual liabilities, and future premiums in this calculation allow only for mortality and interest. The key with a new premium valuation is that the premiums being valued are theoretical measures - they make no reference to the actual premiums being charged by the insurer.
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