Margin(Earthquake)
Hi,
I started making notes in July, before the MCT reading got updated.
Back then, section 4.5.1.3 said that ERC= CW PML-500 - Capital & Surplus- reins coverage - Capital Market financing - EPR. Actually, even the web-based problem in mini battle quiz 4 says that EPR is included in FinRes.
Does that mean that Margin(Earthquake)= 1.25*(CW PML-500-Fin Resources excluding EPR)?
Comments
Yeah that's pretty much what you get if you expand the formula