T
tjcchan
Member
Hi Coralie
I've come across 2 accounts questions in which you are asked to calculate an investment return for the year in the absence of (Q5 Sep 2008, Q5 April 2006)
2006 solution used
(UPR b/f + O/s Claims reserve b/f - DAC b/f)* investment return
2008 solution used
(UPR b/f + O/s claims reserves b/f + 1/2 * cashflow during the year) * investment return
where cashflow is defined as NWP - paid expenses - paid claims
are they both correct? doesn't it matter which one I choose to use?
why aren't the c/f figures being used instead in the first solution?
I've come across 2 accounts questions in which you are asked to calculate an investment return for the year in the absence of (Q5 Sep 2008, Q5 April 2006)
2006 solution used
(UPR b/f + O/s Claims reserve b/f - DAC b/f)* investment return
2008 solution used
(UPR b/f + O/s claims reserves b/f + 1/2 * cashflow during the year) * investment return
where cashflow is defined as NWP - paid expenses - paid claims
are they both correct? doesn't it matter which one I choose to use?
why aren't the c/f figures being used instead in the first solution?