Finance:Present value of new business premiums

Present value of new business premiums, abbreviated PVNBP, is a term used in insurance to indicate the present value of total sales (premiums) confirmed to receive from present to future.

It will be the sum of single premiums and present value of recurring premiums (e.g., life insurance premiums paid year after year). PVNBP makes it compare the sales of two companies having both single premiums and recurring premiums. In a way it does the reverse of what annual premium equivalent (APE) does, i.e., converts recurring income to a single number (APE converts single premium to recurring value).

Related categories

• Insurance
• Annual premium equivalent
• European embedded value (EEV)