P
purple-snail
Member
Hi there,
I was wondering if someone would clear this up for me.
I know the general idea is around:
Regulation prohibits the discounting of future claims reserves.
Here we are making Reserves look like Annuity Payments, and we can therefore discount them...
We want to improve the apparent accounting position of the cedant.
But does the above not imply that we are shrinking assets (reserves?)...??
The core reading seems to contradict the acted reading here..hence my confusion.
Any help would be great.
Thanks
Sarah
I was wondering if someone would clear this up for me.
I know the general idea is around:
Regulation prohibits the discounting of future claims reserves.
Here we are making Reserves look like Annuity Payments, and we can therefore discount them...
We want to improve the apparent accounting position of the cedant.
But does the above not imply that we are shrinking assets (reserves?)...??
The core reading seems to contradict the acted reading here..hence my confusion.
Any help would be great.
Thanks
Sarah