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View Poll Results: How Redundant / Inadequate?
> +20% 0 0%
0% to +10% 4 30.77%
About right. 2 15.38%
0% to -5% 3 23.08%
-5% to -10% 1 7.69%
-10% to -20% 1 7.69%
< -20% 2 15.38%
Voters: 13. You may not vote on this poll

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  #11  
Old 01-28-2011, 09:26 AM
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Interesting, so far it seems most companies are about right or over. I started this thread based on an assertion by a coworker that it is common practice by management to understate reserves. My company is on the low end of the range and we feel that it is about 2-3% inadequate. He felt that most companies were far lower than this.
I'd say the focus is on smoothing earnings rather than to understate reserves. Have a good year, overstate reserves. Have a bad year, understate reserves.
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  #12  
Old 01-28-2011, 06:18 PM
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sf, poll seems to support what you're saying -- no negative bias. Wish I had a few more data points though ..
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  #13  
Old 01-29-2011, 03:55 PM
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I'd say the focus is on smoothing earnings rather than to understate reserves. Have a good year, overstate reserves. Have a bad year, understate reserves.
Once upon a time there was a reading on the CAS syllabus about this (old Part 7). In any case the author concluded exactly that.
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  #14  
Old 02-01-2011, 11:55 AM
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management books to my estimate too, so they're fine.

actually, we book a strong balance sheet no matter the up and down cycle. we're a niche player (sort of) so we've seen big up years and big down years and have maintained a conservative reserving philosophy and practice throughout. makes my job easier.
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  #15  
Old 02-01-2011, 12:00 PM
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It would have been nice to see the poll separated out for private and public companies.
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  #16  
Old 02-01-2011, 12:03 PM
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we're not public
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The worst part of the Zombie Apocalypse - is wating for it to start.

Obama is dumber.

Of all the causes of astronaut insanity, getting a fly caught inside your space helmet is probably in the top three.
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  #17  
Old 02-01-2011, 12:07 PM
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It would also be nice to know whether any of the people that voted work for the same company.
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  #18  
Old 02-01-2011, 12:09 PM
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i'm certain that no other actuary from my company voted
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The worst part of the Zombie Apocalypse - is wating for it to start.

Obama is dumber.

Of all the causes of astronaut insanity, getting a fly caught inside your space helmet is probably in the top three.
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  #19  
Old 02-01-2011, 12:09 PM
Gyudon Gyudon is offline
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It would have been nice to see the poll separated out for private and public companies.
True.. but there's no dataaa.
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  #20  
Old 02-01-2011, 12:13 PM
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It would have been nice to see the poll separated out for private and public companies.
Define public. We are a stock company, but 100% owned by a trust.
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