Aviva leads transition to MCEV

Aviva has continued with plans to replace current financial reporting principles with a new market consistent version despite concerns that the current volatility in financial markets will undermine the value and solvency of life insurers. Aviva unveiled its 2008 results using Market Consistent Embedded Value (MCEV) for the first time and restated 2007 results for comparison. It said it was “happy to lead the industry” in the early adoption of MCEV, arguing that MCEV is important to increasing the transparency of life insurance business.