Hi All, Regarding changes to operating assumptions (projection basis and supervisory reporting), since both bases are best estimate under SII or a market consistent approach, how can you make a change to your projection basis that would not affect your best estimate liability (and hence the net assets)? This topic is tricky for me because in my jurisdiction, supervisory reserves include best estimate (basically best estimate + margin) so if you change your best estimate assumption, your reserves automatically change. Thanks!
Hi Your projection basis depends on a company's EV basis, it is not prescribed by regulation as the regulatory basis. Yes, they are likely to be very similar as you say but there will also likely be differences, eg allowance for liquidity, contract boundary restrictions. Your net assets will be impacted by your reserving basis (and not your projection basis), the change in your projection basis is impacting future profits. I think you will find the following thread useful: https://www.acted.co.uk/forums/inde...ications-of-solvency-regime.18751/#post-73630 Thanks
