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DAC - Subj G april 1998 Paper 1 Q21

L

Leala

Member
Could anyone let me know where does the DAC figure comes from?

Thanks a lot
 
It's just the appropriate % of the UPR as given in the question. i.e. 10%, 10% and 15% for Co's A, B and C respectively.
(Presumably you've assumed the UPRs to be half of the previous year's written premiums.)
 
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