April 2010 2 iv

Discussion in 'SA3' started by km_18, Mar 22, 2018.

  1. km_18

    km_18 Member

    The question is a little confusing as it asks why the two transfer premiums are different relative to the best estimates of the liabilities when the transfer premiums are the same?
     
  2. tharandeep

    tharandeep Member

    Hi km_18

    The question isn't asking you to compare the transfer premiums for portfolios A and B - if that were the case there'd be little to say as they're the same.
    It's asking for reasons why the transfer premiums may differ relative to the BEL for each portfolio. So why may the transfer premium be 1m given the BEL is 2m for A and yet 1m in the case where the BEL is 0.1m for B.

    Hope that's clear.
     

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