• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

The Adj component of SCR

V

Viki2010

Member
Hi, would the Adj component only apply for WP business (discretionary element from bonus declarations)?

I've noticed that the Exam Q1 iv does not mention the Adj component as one of the sources of MA impacts, even though the Adj relates directly to TP thus MA would apply here. However the insurer sells only annuities and so no discretionary elements would apply here.
 
Yes, you are correct - there are no "discretionary benefits" for normal immediate annuity business, only for with-profits business.

As mentioned in the Core Reading, "Adj" also includes any reduction in deferred tax liabilities under stressed conditions.
 
You must log in or register to reply here.
Back
Top