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capital

  1. A

    Debt as Capital

    Hello, This is a capital (ch 4) question. I wasn't quite sure of how some aspects tied together so it would be good for someone to confirm/answer the below. I can understand capital being defined as “assets minus liabilities”. What is confusing for me though is we start defining the components...
  2. Y

    New business model - capital requirement

    Hi there, I am a bit confused with how we can assess the amount of capital to write a product. The notes say that "For each product, total up the model point profit flows for the expected new business (new business model). This will enable you to work out the capital required to write that...
  3. J

    SA3 - Sep 2011 - Q2 iv

    The answer in relation to this captive capital requirements question refers to ICA. This individual capital assessment approach came into effect in 2004. Some of the criteria seem very similar to solvency II. However, I'm unsure of its use today. Does solvency II supersede this now, or because...
  4. C

    What are the shareholder requirements from required capital?

    Chapter 14 (Capital management) says "Required capital represents the level of assets required in excess of liabilities so that policyholder claims (or shareholder requirements) can be met with a high degree of certainty". What shareholder requirements are there which fall under "required...
  5. A

    2018 April Paper Q1 v)

    Can someone help me with this exam solutions please? In the solution, it says • It assumes that risks are fully independent But is it possible that it also assume full dependence, because it assumes all top 5 risk will happen together over a given time period? what would the calculation be...
  6. B

    Clearing house for exchange traded dervis

    How does a clearing house make money and thus ensure it's own capital stability? In the case of futures, there's no fee and margins don't provide 100% coverage. For options, premium goes to the other party and there's no mention of a fee/commission to the clearing house either. So, is a...
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