Utah Admin. Code R590-116-5 - Valuation of a Security Other Than Common Stock Issued by an Insurance Subsidiary
The following provisions supplement Subsection 31A-17-401(3)(a) in controlling the way assets of an insurance subsidiary are valued on the books of the parent insurer.
NPV = ((CF1)/((1 + i)1)) + ((CF2)/((1 + i)2)) + (CF3)/((1 + 3)3)) + ... ((CFn)/((1 + i)n))
NPV = Net present value
CF = Cash flow
i = Assumed interest rate per period
n = Number of periods
If cash flows remain constant, the following formula may be used:
NPV = CF(1-(1 / (1 + i)n) / i)
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