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  #41  
Old 03-24-2009, 11:03 AM
The Straw The Straw is offline
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I think the important thing with GPR (as opposed to other types of reserves) is that the first year's reserve is actually negative because of the timing of the cash flows. That, in turn, will distort how the business looks in the first year and affect distributable earnings. At least that's how I understood it. Hope that helps.
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  #42  
Old 03-24-2009, 11:46 AM
fromtw fromtw is offline
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I think we did answer that when we did IA. I am not allowed to talk more about IA, right?
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  #43  
Old 03-24-2009, 11:49 AM
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Straw and tw, thank you both. Yeah, I'm just making a short comment about first year earnings and basically regurgitating stuff that I used for that IA question. Hope that's enough!
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  #44  
Old 04-05-2009, 09:28 AM
sadm sadm is offline
 
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for task 3 B1, what is the initial investment used to calculate the required IRR at 20%? I got distributable earnings flow, but have no idea about how to get the premium.

help..
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  #45  
Old 04-05-2009, 10:45 AM
sadm sadm is offline
 
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nevermind, I figure it out..
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  #46  
Old 04-18-2009, 02:42 PM
joeshmoe1 joeshmoe1 is offline
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What is your formula for distributable earnings?
1) =After tax income - change in target surplus
Or
2) =After tax income - change in target surplus - Inv Inc on Target Surplus + Taxes on TS Inv Inc
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  #47  
Old 04-18-2009, 04:08 PM
The Straw The Straw is offline
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I did your first option: After-tax income - Change in Target Surplus.
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  #48  
Old 04-19-2009, 01:53 AM
WaitAMinute WaitAMinute is offline
 
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Quote:
Originally Posted by joeshmoe1 View Post
What is your formula for distributable earnings?
1) =After tax income - change in target surplus
Or
2) =After tax income - change in target surplus - Inv Inc on Target Surplus + Taxes on TS Inv Inc
I used 2) but I switched ths signs on Inv Inc and Taxes to get...

=After tax income - change in target surplus + Inv Inc on Target Surplus - Taxes on TS Inv Inc

Target Surplus is being set aside from After tax income, but investment earnings on it will add to After tax income (after being taxed).
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  #49  
Old 04-19-2009, 02:35 AM
joeshmoe1 joeshmoe1 is offline
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Quote:
Originally Posted by WaitAMinute View Post
I used 2) but I switched ths signs on Inv Inc and Taxes to get...

=After tax income - change in target surplus + Inv Inc on Target Surplus - Taxes on TS Inv Inc

Target Surplus is being set aside from After tax income, but investment earnings on it will add to After tax income (after being taxed).
I agree WaitAMinute, thanks.
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  #50  
Old 04-19-2009, 11:15 AM
CowboyGuy CowboyGuy is offline
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1) How is 'Before Tax Income' calculated?

Could anyone confirm whether it is:

Premium + Inv Income on Avg Reserves - Death Benefit - Expenses - Change in Reserve

2) Secondly, will the death benefit column be just the mortality rate from the worksheet TASK3B Assumps?

3) I am wondering why have they partially completed the worksheet TASK3B till 16 years..?? Do we have to extend it further or delete the rows..??

Last edited by CowboyGuy; 04-19-2009 at 11:30 AM..
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