Hi tutors, Would be great if someone could provide some help! X4.2(ii) The question asked for the method one would use to establish the capital required to set up a new insurance company to sell PMI (in a foreign country by a large UK PMI insurer). The solution suggested you need to a) "project future premium income, expenses, claims and investment return." and b) "Use these to give projections of future revenue accounts and balance sheets, which could be used to estimate initial capital required". Is this 'initial capital required' mentioned in the solution referring to the SCR only? or SCR + all the company start up costs? What exact items in the "future projection revenue accounts and balance sheets" do you use to estimate this initial capital? The projection items suggested didn't include change in DAC or change in reserve - why is that? X4.2(iii) The question asked how to calculate the purchase price of an existing insurance company. The solution suggested it consists of the Free Asset + Goodwill, and an adjustment would be made for "any capital that must be tied up to keep the company solvency". Does this 'adjustment' equal to the costs of holding this solvency capital, and the amount should be deducted from the FA+Goodwill? Free Assets calculation 4. The solution suggested Free Assets is the MVA less realistic estimate of the liabilities. Does it mean liabilities = BEL + RM? 5. It mentioned the UPR as part of the Free Assets calculation, and that you need to allow for DAC in the UPR - why is that? and how? Many thanks! M.