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Asset share

S

SABeauty

Member
In St2 it says asset share formula for t+1 is

<(asset share at t + premiums - expenses)*(1 + investment return) - (death SA*qx+1)>/(1-qx+1)

Is this the asset share per person?

Why are they dividing by (1-qx+1)

Thanks
 
The 1-q(x+1) is recognising in-force or survivorship which works for a single policy or mult policies. Consider 1 policy at time t, he/she has to survive the coming year otherwise the asset share will fall to zero. This is better seen by replacing the 1-q(x+1) with p(x+1) and moving it to the other side of the recursive formula.
 
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