sa2

Hi, I do not fully understand the answer to Q2. Here the corporation tax is calculated as (BLAGAB profit + Non-BLAGAB profit) * corporation tax...

Hi, I am struggling to conceptually understand the blagab and non-blagab taxations. Can someone provide a simple example (numerical, really find...

Hello Everyone I have a doubt in one of the solvency capital requirement questions. April 2019 Qtn 1, part iii. When there is an increase in...

Question: A proprietary life insurance company sells conventional with-profits endowment policies as well as without-profits business. The...

Hi, The company has identified a material positive investment variance on its without profits immediate annuity business in the latest annual...

Hi, I am confused with the differences of these 3, and would like to check if my understanding correct: EV is the most traditional embedded...

Hi, I am confused with question 7.2 & 7.3 answer (as well as explanation in page 8 BLAGAB) example q7.2: BLAGAB I-E = 520 BLAGAB profit * = 250...

Hi guys ! I have a few clarifications to make, pertaining M&A and Demutualization: 1. When determining the M&A price, there is usually 2 approach...

Hi ! Good day. Hope you guys are doing well. I have a few queries pertaining asset share & with profit products. Q1: The asset share is...

Hi, For question Q1iii), it's about the impact on EEV when entering into a reinsurance arrangement with single premium P, corresponding to a...

How would people recommend studying for both SP5 and SA2? Switch day-by-day or week-by week? Two in the one day would likely be reserved for...

Hello, Why do we even have situations of NP business written in the WPF where there is another NPF that exists? This is in reference to September...

Hello, The older exam papers seem to always ask this idea of purchasing a block or business or a whole company, eg Q3i on both April 2008 and...

I have two small questions: How are deposit backs treated on the S2 balance sheet? I know for impact of deposit backs on EV are that both assets...

Dear tutors, I really do not understand what this question is exactly asking and what the mark scheme is saying. Can I please have a very...

Hi, could you please help me with this query in Que 3 (i) of sept 2020 exam paper: ***************** The answer on page 9 on examination report...

Hello, I am bit confused on "Return on in-force business" item for determining the analysis of change in EV calculation. (let's Define EV as=...

Hi, Could you please help me with the below queries ( in reference to page10-11 on chapter 15 (ALM)) Que 1: Could you please let me know if my...

Hello - Could you please help me with below queries: Chapter 11 (Que 11.6 - Best estimate liability determination for unit linked contract -...

Hi, While going through the points in chapter-20, I got confused with concept of smoothing. Could you please: Que 1. Help me to understand the...

Hi in this question, they say "property values have reduced so there is less stress". What does this "less stress" mean? How is this related to...

Hi, I am really confused with the way the solution is wrote for this Q. What I would have written is the following (very draft points): Set...

Hi Does anyone have a list of useful acronyms for SP2 and SA2? Thanks Waleed

Hi, in the marking scheme it mentions a the point "It also increases the chance of derivative prices moving against the company, after the terms...

Hi, I am very confused with how AWP bases work. I think it becomes even more complex when there is UWP thrown in. Please can someone provide...

We can consider Sol ll here, but any significant differences with IFRS17 or IFRS4 would be helpful as well. 1. Could someone please explain the...

There is an Acted paragraph in the notes that says: "If changes are made to non-investment assumptions, the CSM is adjusted to offset any...

Hello, As part of my preparation, I am attempting past question papers under SA2. I often see topics/terminology in the questions that I cannot...

Hi, I just wanted to check my understanding of contract boundaries on UL business and the interaction of charges. 1. Is it the case that past...

My understanding of credit spread is that it is the extra yield on backing assets (say corporate bonds) that is in excess of risk-free rates. The...

Hi, I'm struggling to follow the bold text in the following piece of core reading (page 7, Chapter 19 of CMP): "Some companies may allocate...

It is important that Subject SA2 students take the opportunity to keep abreast of current developments in life insurance. It is possible that some...

Hi I am from a pensions background and have recently joined a life insurer and am thinking about sitting SP2 with SA2 for my next exam sitting. I...

Hi all, I'm confused by the examiner's report's answer to this question. It says that "A widening of credit spreads... would lead to a reduction...

Does anyone have a list made up of questions that are out of scope? For example I am looking at Q1 (i) in September 2015 which says to outline...

Is the return on opening surplus calculation under Analysis of surplus the same as the return on net assets calculation under Embedded value. AoS...

Practice question 18.1 of the EV chapter says "net assets will be the total asses in excess of those covering technical provisions plus SCR under...

What is meant by agency costs? This is in relation to the EV

Under solvency II is the investment return assumption used to project future cashflows in relation to the calculation of the best estimate...

Q7iii of September 2009 discusses how the assumptions under embedded value compare to those used to calculate any supervisory reserves. For tax...

How does traditional reinsurance reduce required capital? This is mentioned under section 6 of chapter 14 (capital management). I consider...

Why is subordinated loan stock considered a liability for shareholders? This is mentioned under section 6 of chapter 14 (capital management).

Chapter 14 (Capital management) says "risk also drives shareholder value directly as the market price of financial risk is a core driver of...

Chapter 14 (Capital management) says "Required capital represents the level of assets required in excess of liabilities so that policyholder...

Why does the risk margin increase with increased reinsurer default risk. I understand the SCR will increase if the capital requirements from the...

What is meant by the "INITIAL capital requirement" in the context of the core reading from chapter 11 below. Does this mean the SCR? Core...

The core reading under chapter 22 says "Collateral is calculated regularly and paid between insurer and reinsurer to reflect the value of the swap...

Hi, I have a few questions related to IFRS 17. The initial CSM of IFRS 17 is written down (amortised) over the term of the contract based on a...

Just been reviewing the examiners' report for the most recent paper - April 2019. For Q2 part vi under their first section "Literature" the last...

Anyone has mnemonics for the Risk management chapter? Thought would be useful to generate points/headers

I was wondering if someone could explain the rational for some of the shocks only applying where they would lead to an increase in BEL? I get that...

It states that due to non-linearity, a higher SCR could be produced for the 99.5% than that calculated by the correlation matrix. Therefore...