Hi, the exam paper states that expected premiums in 2018 are $60m and $20m for Motor and Property respectively, with excess assets at the end of 2017 of $60m. However in the example solution the expected profit from the 2018 premiums are recorded under the 2017 projection in the 'Projection' tab. These are then added to the end 2017 excess assets to produce own funds at end 2017 of $72m. Why is the expected 2018 profit from expected premiums recorded under the 2017 projection? Should column C in the 'Projection' tab not refer to 2018?
If you read the question paper again, Own Funds at the end of 2017 = Expected Profit in 2018 + Excess Assets at the end of 2017 Also, the expected premiums for 2018 recorded under 2017 projection also because to calculate Premium Risk Capital 2017, you need to apply the risk charge to Expected Premiums in 2018. Examiner put it under 2017 because those information are the "inputs for 2017 calculation", I wouldn't read it as "2017 Expected Premiums"
