Net Loss Reserves
Under IFRS 4, Net Loss Reserves = UCAE gross - recoverable UCAE => does it mean (under IFRS17) LIC - AIC?
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Under IFRS 4, Net Loss Reserves = UCAE gross - recoverable UCAE => does it mean (under IFRS17) LIC - AIC?
Comments
No it doesn't work like that anymore. Under IFRS17 reinsurance and direct cash flows are to be modelled separately and there is no similar concept to net loss reserves. One of the reasons you can do a straight LIC - AIC is your Risk Adjustment is different for both values