Formula for Net Investment Income
The formula below is given for calculating Net Investment Income:
I am a bit confused on the inclusion of Gross Investment Income as a separate line item. Intuitively, this seems like it should be the sum of all prior items, then result in NII when deducting Investment Expenses & Taxes.
There isn't anything in the Detailed Instructions about this, but I believe this interpretation can be confirmed with the P&C Validation Rules on the OSFI website:
Thoughts?
Comments
Yeah it seems that way to me too. I cant imagine what else would be in gross investment income besides realized gains + unrealized gains + dividends. Thoughts @graham ?
I got this formula from page 40.74 (Investment Return)
But like you said, the formula is not given the CCIR instructions. Maybe I misinterpreted the layout of the exhibit? The Core Return Excel Exhibits didn't have any numbers so I couldn't verify.