G
GauravT
Member
Hi Lindsay,
In calculating cost of residual non hedgeable risk for MCEV using cost of capital method for with profits business, is the loss absorbance capacity of technical provisions considered in SCR?
Can you please share the reasons for yes or no?
And if yes, what are it's implications on EV for with profits business as it is primarily present value of future share holder transfer which in turn depends on the Policy holder bonuses on which the loss absorbing capacity depends?
I am sorry I am asking this post exams but I am still confused on this.
Thank you.
In calculating cost of residual non hedgeable risk for MCEV using cost of capital method for with profits business, is the loss absorbance capacity of technical provisions considered in SCR?
Can you please share the reasons for yes or no?
And if yes, what are it's implications on EV for with profits business as it is primarily present value of future share holder transfer which in turn depends on the Policy holder bonuses on which the loss absorbing capacity depends?
I am sorry I am asking this post exams but I am still confused on this.
Thank you.