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BEL Valuation

Calculate the Gross Best Estimate Liability instantly.

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Gross Best Estimate Liability

€20 855 743

Present Value Year 1

€5 882 353

Present Value Year 2

€4 882 794

Present Value Year 3

€4 037 283

Present Value Year 4

€3 325 206

Present Value Year 5

€2 728 107

Undiscounted Gross Liability Cashflows Total

€22 251 788

Discount Effect

€1 396 044

1Step 1

Present Value Year 1

Present Value Year 1=Gross Liability Cashflow1×Discount Factor1\textit{Present Value Year 1} = \textit{Gross Liability Cashflow}_{1} \times \textit{Discount Factor}_{1}
2Step 2

Present Value Year 2

Present Value Year 2=Gross Liability Cashflow2×Discount Factor2\textit{Present Value Year 2} = \textit{Gross Liability Cashflow}_{2} \times \textit{Discount Factor}_{2}
3Step 3

Present Value Year 3

Present Value Year 3=Gross Liability Cashflow3×Discount Factor3\textit{Present Value Year 3} = \textit{Gross Liability Cashflow}_{3} \times \textit{Discount Factor}_{3}
4Step 4

Present Value Year 4

Present Value Year 4=Gross Liability Cashflow4×Discount Factor4\textit{Present Value Year 4} = \textit{Gross Liability Cashflow}_{4} \times \textit{Discount Factor}_{4}
5Step 5

Present Value Year 5

Present Value Year 5=Gross Liability Cashflow5×Discount Factor5\textit{Present Value Year 5} = \textit{Gross Liability Cashflow}_{5} \times \textit{Discount Factor}_{5}
6Step 6

Undiscounted Gross Liability Cashflows Total

Undiscounted Gross Liability Cashflows Total=∑i=15Gross Liability Cashflowi\textit{Undiscounted Gross Liability Cashflows Total} = \sum_{i=1}^{5} \textit{Gross Liability Cashflow}_{i}
7Step 7

Gross Best Estimate Liability

Gross Best Estimate Liability=∑i=15Present Valuei\textit{Gross Best Estimate Liability} = \sum_{i=1}^{5} \textit{Present Value}_{i}
8Step 8

Discount Effect

Discount Effect=Undiscounted Gross Liability Cashflows Total−Gross Best Estimate Liability\textit{Discount Effect} = \textit{Undiscounted Gross Liability Cashflows Total} - \textit{Gross Best Estimate Liability}

Understand the BEL Valuation

Overview

This calculator values a gross Best Estimate Liability (BEL) by discounting projected gross liability cashflows with year-specific discount factors.[1][2] It is the canonical valuation step that sits between cashflow projection and gross-to-net technical-provisions reconciliation.

Input Terms

  • Gross Liability Cashflow Year 1 to Year 5: The projected yearly liability cashflows before reinsurance relief.
  • Discount Factor Year 1 to Year 5: The per-year discount factors used to convert future cashflows into present values.

Technical Rationale

The BEL is the present value of expected future liability cashflows. This page keeps that task narrow by discounting the projected stream only, without mixing in reinsurance recoverables, risk margin, or reporting bridges. That makes the valuation step easier to check and easier to reuse in the wider technical-provisions chain.

The output is a gross BEL. Netting effects belong on the `Reinsurance Recoverables` and `TP Gross-Net Reconciliation` pages, which keeps each engine focused on one job.

Important Notes

  • This page values the gross BEL only. It does not net reinsurance or add risk margin.
  • The five yearly present values are shown separately so users can inspect where the valuation is concentrated across the run-off profile.
  • The result supports technical-provisions review and balance-sheet reconciliation work, including the gross side of the S.02.01 technical-provisions bridge.[[ref: qrt-s0201]]

Sources

  1. Directive 2009/138/EC - Art. 77 (Calculation of technical provisions) - EIOPA
  2. Methodology for the relevant risk-free interest rate term structure - European Commission
  3. Commission Implementing Regulation (EU) 2015/2450 - QRT S0201 (Balance sheet) - EUR-Lex

Default values are illustrative sample inputs for navigation, training, and QA. Replace them with controlled data before using the result in capital analysis, governance, or reporting decisions.