Hello, According April 2016 Paper 1, question 4 part (i). The answer implies that Surrender profits occur when more than expected policies are surrendered. But surely that would depend on: 1. Asset Share 2. Surrender Penalty 3. Surrender Fee? so if a policies is surrendered lets say at the beginning of the term, you will be making a loss on every single surrender. So you could have a scenario where the number of surrender is lower than expected? Thanks, Tong
