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Hi, In X3 assignment, Question 1 iv) b) The solution mentions that a statement could be issued to shareholders, explaining the rationale of this...
Hi, Can someone help me in understanding why haven't we considered the impact on assets for lapse/mortality experience variance? We have...
Hi, I would like to understand this concept numerically. Say cost of capital (coc)= 6% * required capital Under standalone basis for a new...
Hi, How does derivative increase available capital by reducing regulatory capital requirement? It is mentioned in Core Reading, Derivatives...
Hi, I want to confirm the following- In analysis of surplus (say surplus = assets- BEL over the year), Change in economic assumptions...
Hi, Q1 iv) Excess of assets over BEL is higher than expected at the end of the year. For all comments related to increase in profit in the...
Hi, Available capital= own funds= SCR + free surplus Also, available capital = assets- TP Now, if the SCR increases, using first equation, would...
Hi, I would like to confirm how does using derivatives reduce required capital. It increases counterparty risk hence required capital would...
Hi, I want to clarify the reason for having a shorter time horizon of economic capital models when risks can be hedged. 1. When we talk about...
Hello- need a quick clarification. When we say that MCR and SCR both must be held, say MCR= 20 million and SCR = 100 million, in reality we are...
Hi, Can someone confirm how these charges are made practically? There is a charge in BLAGAB fund for tax on realized and unrealized gains,...
Hello, In one of the questions in X series ( X3.2 ii), the solution mentions that capital is required for following purpose when writing new...
Hi, When liabilities are transferred between insurers, do we always consider technical provisions of selling insurance company or the EV? How...
Hello, I need help in understanding VIF as calculated for EV. I have seen multiple definitions in SP2 and SA2. Summarizing my understanding...
Part i) Impact on assets is quite straightforward, Risk margin and SCR is also ok. BEL- I understand why BEL for with profits will be Asset...
Q3. vi) Why would the new approach under which free capital is lower lead to insolvency of companies? Regarding balance sheet disruption, I...
Q1. iii) Credit risk SCR As risk free interest rate has dropped, credit spread would widen. Hence, value of corporate bonds would reduce and...
Hello, Q2. iii) I would like to know more about the impact of increase in mortality on estate. Specifically, if claim on death is greater than...
PVFP (ie the present value of future shareholder profits) = PV {Premiums + investment return - claims - expenses + release of reserves} = PV...
Hello, Why is risk free rate based on swap rates? Core Reading suggests that government bond yield is used only if a sufficiently deep and liquid...
Hi, Can someone explain why would we compare asset share with reserve for assessing feasibility of terminal bonus? I understand that we compare...
Hi, Is anyone interested in discussing the Examiner's report for this attempt? I am retaking SA2 in April. Will be helpful to learn from...
Hello, I have a very basic question. When we calculate 'I' part for tax purpose, why are we not considering premium? We just consider investment...
IFRS17 overcomes following IFRS4 limitations- 1. the sensitivity of profits to reserving assumptions 2. the lack of comparability of different...
Hello, In the Core Reading, a list of areas of operation of life insurance companies affected by climate change is present. I want to understand...
Hello, I want to clarify the point below as a reason for projecting solvency position- Estimate pattern of capital releases and assess whether...
Hello, I have few doubts in the surplus analysis process when we use the new non economic assumptions. 1. The relevant part from Core Reading...
Hello, Looking for a clarification about 'benefits' being a deduction while calculating asset shares. Cost of benefit= cost of providing...
Hello, Following up for April 2017 Q1 iv) what is the impact of matching adjustment on standard formula SCR? Whenever we talk about SCR impact,...
Hello, Correlating few concepts of EV between SP2 and SA2 here. Per SP2 Core Reading, For without-profits business, the present value of...
1. iii)c) Widening of credit spread. While considering the impact on available capital, we have considered the reduction in BEL due to increased...
Hello, For Q1, part i) Text from the question below for reference- then roll the model forward to the new valuation date using actual...
Hello, In April 2020 attempt, answer to Q2 iv) talks about stresses in internal model. My question is- how do we calculate internal model in...
Hello, We know that term reserve is very low hence related investment income is low as well. In hindsight, can someone please supplement to my...
Hello, Need help with understanding few alternative solutions to examiner's report. Want to check if my understanding is correct. Q6. part v)and...
Hello, Need help in understanding Q1 part i) risk 'interest rates up' As BEL for Solvency II SCR is calculated using risk-free rate as...
Hello, Can someone help in clarifying these questions from April 2021 session? Q4- part v) The term of risk free rates given isn't very clear...
Hello, Can someone please clarify the solution for few parts in this attempt? 1. iii) b) Can this increase in expense be considered as a one off...
Hello- Can someone please clarify my doubts below? Q2 part ii) How is the existing profit model adapted? Why are we not considering assumptions...
Hello-I need help with few miscellaneous doubts in this attempt. Q1. Part ii) In the calculation of EEV, why are we including new business...
1. vi) Can we also consider minimum lock-in period for withdrawal (of Product B)as a method for managing liquidity risk?
In question #2 part v) of this attempt, why doesn't the Examiner's Report consider Pillar 3 requirement of Solvency II for reporting and...
Hello- Few questions which I need help with are as follows. Look forward to hearing from someone who can clarify my doubts. Question 1 1. Part...
Hello- can someone please help in understanding the purpose of format of asset-backed securities (ABS) ? Is there a practical example which I can...
Hello, I’m planning to take SA2 in April 2022. If anyone is interested in studying together (clarifying doubts, building exam strategy, checking...
Hello, Can someone please share the workings of example question in study material for Alterations section 3.2? We need to calculate the paid up...
Hello, While solving April 2018's question paper, I had following questions. Can someone please help? 1. Q3 i)- For negative non unit reserve,...
While solving past year papers, I had few questions. Cab someone please help in clearing my doubts? 1. For option payoff, we were asked to draw a...
Hello, I have doubts related to all parts of question #1 in this sitting. Elaborating further below- Note that I have solved quite a few...
Hello, I have questions around few intermediate calculations of Q7, part iv) Referring to the solution in Examiner's report. 1. Why are we...
Hello, Can someone please help in understanding the features of the product described in Q5 part i) A conventional immediate annuity with 50%...
Hi, Can someone please share a detailed solution of this question? I could not get to the answer beyond calculating MWRR for each country. How to...
Hello, While revising the core reading, I came across few parts which I didn't understand completely. Can someone please help with a solution?...
Hello, I had a bunch of questions while going through the Core Reading. Can someone please help? Listing the questions below. The text in italics...
Hello- The core reading for this section is not extensive. I want to understand the practical application of the two approaches for calibration-...
Hi, I am preparing for SP5 to take the exam in April 2021. As most of us are still working from home and it is not that convenient to discuss...
I was wondering why is the surrender value considered when we are discussing the impact of lapse assumption? Isn't surrender value only paid on...
Scored 47 in April diet of CP1. Looking for suggestions to bridge the gap and pass in next attempt. Given that barely 2 months left for next exam...
Hi guys, I read about the command verbs used in IFoA exams on their website and its very helpful but I still have a question. 1) When a question...