Retrospective Reserve

Hi Guys

I have a few queries on retrospective reserves.
i) When would you use a retrospective method as opposed to a prospective reserve? For which products would you be more likely to calculate a retrospective reserve and why?

ii) Can you calculate a retrospective reserve using a cashflow projection method or you are only confined to a formula approach.

 

Hi

i) Typically used to calculate the asset share for with profits business. Firms that must produce a realistic balance sheet are required by regulators to show the aggregate asset share (with profit benefit reserve) as part of Peak 2 reporting

ii) Yes you would calculate the WPBR using a cashflow projection method