Hello, Section 4 of Alteration describes how much profit is released at the time of alteration and the expected future profit of Altered policy. My question is what happens to the Asset share if there is a release of profit. Is it adjusted from the asset share? Regards, Pulkit
Hello Pulkit The asset share is the retrospective accumulation of the premiums less claims less expenses. This does not change at the point an alteration is made. The asset share is used as a means of keeping track of profits and losses, so we don't want to adjust the asset share when profits/losses are made. The insurer will have made a profit if the asset share at the end of the contract is higher than any benefit paid at the end. Best wishes Mark