Growth Rate in the Share Price Using VNB, NBM, APE
Introduction
4.1.This chapter first defines some of the profit indicators the Indian insurance companies use in their annual reports and then demonstrates how to use them to measure the growth rate inherent in the current share price.
What are the profit indicators used by Indian insurance companies?
4.2.Companies often flaunt the following in their annual reports and to use them we first need to understand them.
New Business Margin (NBM)
4.2.1.NBM is a percentage measure of profitability computed as the present value of future profits on the business sourced in a particular period, usually a year, and denoted as a percentage of annualized premium equivalent.
Annualized Premium Equivalent ...
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