S
studentactuary15
Member
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 September 2009. Then it asks for considerations for when they determine a price. The mark schemes tend to imply to start off with the PVIF or the EV (correct me if I am wrong here).
In our syllabus, what is the way that we should use as a starting point? If we (X) want to buy company Y, do we use the starting point with SII? So this is BEL + RM. Or do we use surrender values for the block of business we want to buy. Or do we use PVIF (or EV if we want to buy the whole company)? We are effectively finding some type of transfer value.
Of course, then we need to consider other aspects like one off expenses, synergies, tax, risks, practicality, etc.
Thank you
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 September 2009. Then it asks for considerations for when they determine a price. The mark schemes tend to imply to start off with the PVIF or the EV (correct me if I am wrong here).
In our syllabus, what is the way that we should use as a starting point? If we (X) want to buy company Y, do we use the starting point with SII? So this is BEL + RM. Or do we use surrender values for the block of business we want to buy. Or do we use PVIF (or EV if we want to buy the whole company)? We are effectively finding some type of transfer value.
Of course, then we need to consider other aspects like one off expenses, synergies, tax, risks, practicality, etc.
Thank you