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A couple questions

A

Avviey

Member
Hi

I have two questions as follows:

1. 402 April 2004, page 12 of the answer - it says ' since the company is currently XSE, a decision needs to be made to what extent the relief of the XSE will be allocated to in force business....projections for the additional relievable expenses carried forward.' shouldn't be unrelieved expenses here for both red highlighted ones as its XSE?

2. Sep 2011,on top of page 11 of the answer, it says ,' fall in equity value was sudden it maybe there has been no impact in dividend payments is earnings. In this case yield will rise...' why would the yield rise since there was no impact in dividend yield?

Thanks very much if anyone can help.
 
Avviey said:
Hi

I have two questions as follows:

1. 402 April 2004, page 12 of the answer - it says ' since the company is currently XSE, a decision needs to be made to what extent the relief of the XSE will be allocated to in force business....projections for the additional relievable expenses carried forward.' shouldn't be unrelieved expenses here for both red highlighted ones as its XSE?
Click to expand...

I think this part of the answer could have been worded more clearly.

The idea is that although they are unrelievable this year, they will be relievable in some future year, so we're projecting them forward until they can be relieved.

Avviey said:
2. Sep 2011,on top of page 11 of the answer, it says ,' fall in equity value was sudden it maybe there has been no impact in dividend payments is earnings. In this case yield will rise...' why would the yield rise since there was no impact in dividend yield?

Thanks very much if anyone can help.
Click to expand...

If dividend payments (not dividend yields) stay the same when equity values fall, then dividend yields (=dividend/share price) will increase.
 
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