Y
yogesh167
Member
Hello
1. The solution in X5.1(i) says, under ALM, capital sum may exceed value of future profit stream from annuities .....because of SII restrictions on matching adjustment and longevity risk would be passed to....
how does matching adj restriction come into place here?
2.Under 'Other' in the same part, it says - entering new sectors of the annuity business,eg- bulk annuities. How?
X5.1 (iv) I understand what is prepayment risk but could not make sense of what is written in first para under prepayment risk here?
who is operator here? option to terminate etc?
thanks in advance
1. The solution in X5.1(i) says, under ALM, capital sum may exceed value of future profit stream from annuities .....because of SII restrictions on matching adjustment and longevity risk would be passed to....
how does matching adj restriction come into place here?
2.Under 'Other' in the same part, it says - entering new sectors of the annuity business,eg- bulk annuities. How?
X5.1 (iv) I understand what is prepayment risk but could not make sense of what is written in first para under prepayment risk here?
who is operator here? option to terminate etc?
thanks in advance