Hi I do understand the above formula given in examiner's report. However, can I assume the investment income is earned on the average of the technical reserve over the year? In this case, we just need to calculate (UPRc/f + UPRb/f + OCRc/f + OCRb/f)/2. UPR is net of DAC. I think this method is used in April 06 Q5 and a few other places.
An additional question about AURR - why it appears as an item in Balance Sheet but not in Profit and Loss Account?
Thanks a lot.
Last edited by a moderator: Apr 7, 2013