Separate names with a comma.
And for nonblagab, the losses can be offset against past / current / future profits as well, right? So in terms of offsetting, both regimes offer...
If a company is XSE, there would be no policyholder profit, but don’t the policyholders have to pay at least the basic rate of tax when they...
How is the loss carry forward treatment different under blagab and nonblagab? Blagab calls it as xse I believe. Is it that the nonblagab losses...
Ok so I think I’m getting confused between the release of risk margin (or cost of holding required capital) and release of reserves itself, for EV...
Thanks, so upon a surrender, does the redeemed value of the bond be sensitive to interest rate movements as well as any penalties? Just trying to...
Also, release of risk margin is different to release of reserves, is it? Former represents one period less of frictional costs of holding required...
Another general question on this product: Example, the premium recieved is 100, 10 goes to charges, 85 to fixed bonds and 5 to call option at t=0....
Overall, not following how and why there is a difference in basis for Embedded Value calculations. Also, on what basis are the other components...
1. What is the difference between projection and superpisory basis in Embedded Value and where are they applied in the calculation? 2. How does...
Sep 2022. Q2 ii) Why is it mentioned that current asset share represents the discretionary claim value? The current asset share would only...
The examiner remark says Q1. "(vi) This was answered best by candidates that recognised that the risk margin only covers non-hedgeable risks and...
Q1. iii) Why interest rate risk is future yields being lower than expected? The increase in BEL would be offset by the increase in assets. I...
Can you please explain with an example, how Asset Share + CoGs relates to the BEL for WP? The explanations above are helpful but I don't follow...
Very very helpful! You should be writing the core reading notes :) Just a suggestion - examples like this in the course notes will be quite...
Still trying to grasp this logic. Let's say an endownment without profits is backed by equity (assuming the company is very large and has many...
Hi again, we don't consider the impact on BEL? Let's say the product being backed is a UL endownment plan. A fall in equity would also reduce the...
In general, isn't it that a negative BEL is considered favourable or rather an asset compared to positive BEL which is a true liability. So in...
Hi, thanks. Unfornutalety, tried reading through the notes again but it doesn't seem clear enough. Unable to understand what are the differences...
Okay, however, wouldn't the bonds have to be sold at some point which would be matched to the liaibility payouts? So say, a payout has to be made...
So when the spread increases, the liquidity risk goes up because now, the asset price falls and it’s enough to pay liabilities and the insurer...
Very basic question - what do you mean by "liquidity component of spread risk"?
So, would this probably be true for conventional products in a way? Because the customer sees the guaranteed benefits but at the same time, the...
Still don’t understand. Can you explain with a simple numerical example, how does a shadow fund operate parallel with what’s shown to the...
Hi, I am struggling to conceptually understand the blagab and non-blagab taxations. Can someone provide a simple example (numerical, really find...
Thanks. And from a stress perspective, for equity scr, will the equity price be increased or decreased? Let’s assume under 2 scenarios,...
Oh ok! Positive SCR is unfavourable, that helps a lot :) so would it be right to say in both parts, being discussed above, the impact on scr is...
hi, thanks. I understand the change in base impact (300 to 200). Still not sure about the 40% stress. The 40% stress also reduces the equity price...
So here, the free assets are going down and NUR BEL is going up, and we are saying the SCR impact will be favourable. From a logical point of...
I still don't understand this, very confusing! On one hand the increase in equity is considered bad and on the other good. How does it matter...
Hi, same question, part i) Why fall in equity / property under stress leads to lower SCR? I thought required capital stress = Base avl capital -...
Got it thanks. so basically the BEL impact from such variances contribute to BEL analysis of change. Whereas the p&l during the year from such...
Okay, thanks.. so are we saying that a pure experience variance if it doesn’t have any impact on the future projections is not part of analysis of...
okay, but why in the death higher than assumed, experience variance is mentioned in the answer? I understand with more deaths there would be lower...
April 2021, Q2 iii) Higher expeses - why is this not an experience variance in the BEL analysis of change? Also, for parts ii and iii, why is...
Thanks and apologies, yes I am referring to sep 21. 1. I still don’t follow the explanation. Why no correlation seen for fixed bonds but only for...
Q1. ii) Why increase in interest and spread only impacts the fixed interest bonds in free assets and not the other ones like property? An...
What about the matching concept though? Although the PV of assets = PV of liab, the expected liab outflow should also be matched by asset at each...
Thanks. 1. If the asset duration is increased, although the payout period is increased, doesn't the payout itself reduce so that the PV is still...
Q3, v) Can someone please help in understanding the impact of fall in interest rates to the proposed investment strategy with an example? Somehow...
Also, can someone please help me understand Q2.iii) impact of fall in equity? A simple numercical example would be very helpful. 1. How is the...
Just to confirm my understanding, let's say the risk-free rate in both countries is same, should the credit spread widen, the reduction in value...
Thanks, I get this. But on the other hand if I think of it more, say the value property drops so the assets drop. Surely, the stress applied to...
I would like to understand how to determine the impact of various movements on the undiversified SCR, with some basic reasoning. Say: 1. Fall in...
Hi, I’m struggling to understand the minimum profits test concept in general. And if further gets complicated when going into blgab and non blagab...
Hi, sorry I am but confused with this discussion. it’s somewhere said, profit = release of prudential margins in the reserve and then it’s also...
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...
I understand. I was coming from a view (probably not very realistic) when an insurance company starts operations and has no business in the past....
Very helpful discussion. It seems there are differences in the recognition but are there differences in the contract boundaries between Sol 2 and...
Yes, that was my question on the use of claims as a risk driver. So I am just trying to understand the logic here (which you have already...
Sorry, if my question was not clear. I am trying to say that say, the BEL + Risk Margin i.e. the technical provision is negative, so on the...
4. One of the IFoA presentations say that tech provisions = claim provisions + premium provisions + risk margin. Is the PV of future cashflows =...
Trying to get my head around the concept of reserving and captial, some questions (let's consider solvency 2): 1. The techinical provisions or...
