Couple of questions on P&C-1

[Digweed]

1. How is MCT affected by registered reinsurer? The notes said that 2.5% and 0.5% margins are applied to claims ceded and unearned premium ceded. But where does that show up in the calculations of capital required?

2. What does this mean? "Net gains and losses are calculated separately for investment and for real estate. A shortfall in either category fully reduced capital available. On the other hand, capital available is increased by one-half of a gain in the first category, ..." (2004-53).
- Is this an old calculation that no longer applies?

[hemsky]

Hi Digweed:

1) They are found on 30.71, lines 60,61, which goes into Capital required for assets

2) I don't think that calculation applies now, with the introduction of the "Fair Value" rules?

[Digweed]

Thanks!