Actuary@22
Very Active Member
Hi
In Ch 14,Section -Allowance for Supervisory reserves and solvency capital the formula for total profit arising over the year doesn't include any outflows explicitly. Please explain where are the outflows being taken care of.
In Ch 15,pg 14 Acted 2019 notes -question why PV of future profits for existing business would be positive. I didnt understand the Retrospective point of view. The company would incur expenses and commission in writing the business so there would be an initial strain then in that case wont the PVFP would be negative? Please explain the Retrospective view.
Thanks in advance
In Ch 14,Section -Allowance for Supervisory reserves and solvency capital the formula for total profit arising over the year doesn't include any outflows explicitly. Please explain where are the outflows being taken care of.
In Ch 15,pg 14 Acted 2019 notes -question why PV of future profits for existing business would be positive. I didnt understand the Retrospective point of view. The company would incur expenses and commission in writing the business so there would be an initial strain then in that case wont the PVFP would be negative? Please explain the Retrospective view.
Thanks in advance