section 5.3, p. 15 - gross premium valuation We are comparing the value of liabilities against (from gross premium valuation on realistic assumptions) against the - option 1 - market value of assets OR - option 2 - discounted value of asset proceeds. Is the third option to compare liabilities to the "aggregate asset shares" in a sense that the AAS are an alternative to option 1 and 2 above?
Hi Yes, what's being suggested here is indeed comparing the value of liabilities with the aggregate asset shares. Rather than see them as 3 independent options though, I think they overlap. So, for example, the assets that make up the aggregate asset shares might be valued at market value. Best wishes Lynn
