It is a challenging task to read the balance sheet of an insurancecompany. This derives from the fact that different positions are oftenmeasured by different yardsticks. Assets, for example, are mostlyvalued at market prices whereas liabilities are often measured byestablished actuarial methods. However, there is a general agreementthat the balance sheet of an insurance company should be measured in aconsistent way. Market-Consistent Actuarial Valuation presentspowerful methods to measure liabilities and assets in a consistentway. The mathematical framework that leads to market-consistent valuesfor insurance liabilities is explained in detail by the authors.Topics covered are stochastic discounting with deflators, valuationportfolio in life and non-life insurance, probability distortionsasset and liability management, financial risks, insurance technicalrisks, and solvency.

Stochastic discounting.- Valuation portfolio in life insurance.- Financial risks.- Valuation portfolio in non-life insurance.- Selected Topics.