S
SABeauty
Member
The notes describe PVIF as "present value of future shareholder profits from in force"
In the question it has a WOP contact with a profit criterion of 400, requires a reserve of 100 and a negative asset share of 200.
The answer says PVIF is 700.
I really don't see this - why is this the case? The profit is 400 so why is this not the PVIF?
Or is the PViF actually the total reserves held?
In the question it has a WOP contact with a profit criterion of 400, requires a reserve of 100 and a negative asset share of 200.
The answer says PVIF is 700.
I really don't see this - why is this the case? The profit is 400 so why is this not the PVIF?
Or is the PViF actually the total reserves held?