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An insurance business has value if its cost of float over time is less than the cost the company would otherwise incur to obtain funds. But the business is a lemon if its cost of float is higher than market rates for money.. Buffett also touches on what makes valuing an insurance company difficult.nsurance Valuation Insight. A couple of key metrics can be used to value insurance companies, and these metrics happen to be common to financial firms in general. These are price to book (P/B) and return on equity (ROE).
Rating Newest Oldest. Best Answer: Surrender value means that you give up your insurance and by giving up your insurance, if there is any cash value, you give that up, also. For example, if you have $1000 in cash value and your surrender value says $600 then it means that you were charged $400 by the insurance company. Surrender value, usually, is in effect for the first two to three years. Look at the guarnateed column in your policy then look at the surrender value column.