SP3 doesn't exist Steve. The old ST3 exam split into ST7 and ST8 back in 2010. If you're looking for specimen exams, you'll need SP7 for reserving and capital modelling, and SP8 for pricing.
Hi there, Has anyone actually attempted this paper? I have a number of things I would like help with relating to q1 part iv) 1) It seems that there is actually some information missing? The answers speak to defensive/growth assets and a relative charge on each....where has this information come from? 2) The answer includes a reference to reinsurance being 0. I assume then that this relates to the the "other components". Or is this a typo? I thought that SCR results were calculated net of reinsurance, so why then would they make reference to reinsurance arrangements if the charge is 0? If this is a typo, then it would make sense to make reference to the reinsurance. 3) The answer makes repeated reference to the 95th percentile. Where has this information come from? If we are talking to Solvency II, then the MCR is calibrated to 85% over a 1 year time horizon? 4) The answer makes a reference to the reserving policy and the 75th percentile sufficiency. Where has this information come from? I understand that under IFRS reporting, many companies choose to hold a "risk margin" ontop of their best estimate, calculated for example by bootstrapping. Are we to assume then that the "Amounts from Financial statements at 31 December 2012" are calculated using stochastic techniques? Or is this referring to the current MCR requirements? - which seems to be missing information. This then seems to make out that the current and proposed regulatory minimum are set to 75% and 95% - which would make sense given their repeated reference in the answer. 5) What actually is the difference between Underwriting risk and Liability risk in the context of this question?