Is FCF = LIC?
FCF = PV (future cash flows) + RA for non-financial risk.
LIC = an unbiased current estimate of future cash flows + adjustment for discounting + RA (for non-financial risk?)
Aren't the first two terms for LIC equaling to PV (future cash flows)? Then FCF = LIC?
Comments
For LIC: Yes, because there is no CSM on the LIC