Hi Mark,
Q1 Please clarify one thing more in "EV calculation" it is written that for non linked business EV = release of any margins in supervisory reserves wrt to EV assumptions(which are realistic) and other side EV= Net Asset +PVFP where PVFP =premium+reserve income-claim-expense-increase in reserve .How both are equal .Please could you explain me through example.
Q2 In above example when RDR=8% we are releasing more profit 104 than increased in margins of reserves ( increase in margins =100 ).should profit release and margins release not be same since increasing prudence will defer profits ,not change the total profit.
Last edited by a moderator: Aug 9, 2016