Hi all, I can't figure how the DAC and UPR is calculated? It says "Acquisition cost as a % of GWP", i can see that DAC = AC% * UPR. But how did they get to the UPR? Thanks
I just got it, is because of the assumption that policies incept evenly over calendar years 2010 and 2011. so UPR = GWP/2. Silly me ! Now ROCE, does ROCE = (Free Reserves / Profit) ?
ROC=(profit after tax) / (free assets at the start of the year). So for Co A say, we get -57/(180-(-57))=-24%. (Assumes no tax and no dividends.)
