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Ah, I see. I think you’re right to assume end-of-year distributable earnings because pieces of distributable earnings in the projection, like Investment Income on Required Capital, require a full year to achieve the full return. Mid-year earnings would probably be an acceptable solution too, although it would require modifications to the 11.5.3 formula. Beginning of the year distributable earnings is probably not acceptable. I’ve reworked my EV calculations to assume end-of-the-year timing and got your answer.

I also verified the PV(Distributable Earnings) = 0 at time 0 using the ROIs calculated by Excel’s IRR function. So I did not change my answer there. PV(Distributable Earnings) = 0 at time 1 as well. Discounting 0 at time 1 is still 0 at time 0.

For NB strain, yes, I left the percentage negative. The textbook does not say to take the absolute value so I did not. Admittedly, this did make it more difficult to describe in words whether the sensitivities made new business more or less strained.