Net Premium method

Discussion in 'SP2' started by jonbon, Mar 28, 2011.

  1. jonbon

    jonbon Member

    Is that true that assets are valued using Adjusted Book value method under NP valuation?
     
  2. Mike Lewry

    Mike Lewry Member

    The NP method is a method for valuing liabilities and so says nothing about the way assets are valued.

    However, in the UK, it is true that assets backing non-linked business are often written up so that their value is the same as the value of liabilities. This counts as an "adjusted book value" method and is used to minimise the surplus emerging for tax reasons.
     

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