The solution says "Extent of cross-subsidies, as the company is targeting transfer business, by definition there are going to be few cross-subsidies". Please explain.
The solution says "A company may set a unit growth rate for UL business based on the best estimates of returns on the assets held to back the unit funds- this is likely to be higher than the assumption used for supervisory reserves". Is this because the company wants to show a lower unit fund value?