Actuarial Outpost
 
Go Back   Actuarial Outpost > Actuarial Discussion Forum > Life
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions


Upload your resume securely at https://www.dwsimpson.com
to be contacted when our jobs meet your skills and objectives.


 
 
Thread Tools Display Modes
Prev Previous Post   Next Post Next
  #1  
Old 11-13-2017, 02:09 PM
House House is offline
SOA AAA
 
Join Date: Nov 2007
Posts: 4
Question AG 49 Question

In the following excerpt from AG 49, what are other companies assuming to be the definition of Assumed Earned Rate?

"If an insurer engages in a hedging program for index-based interest, the assumed earned interest rate underlying the disciplined current scale shall not exceed 145% of the annual net investment earnings rate (gross portfolio earnings less provisions for investment expenses and default costs) of the general account assets (excluding hedges for index-based credits) allocated to support the policy."

We initially used the maximum illustrated rate under our cap and had some testing issues, but then adjusted it to include our target spread but bumped into the limit. So are the only options to either pass testing with spread compression forced by the 145% limit or reduce the illustrated credited rate?
Reply With Quote
 

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -4. The time now is 12:44 AM.


Powered by vBulletin®
Copyright ©2000 - 2017, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.30867 seconds with 10 queries