Fall 2019 Q15

Seems if the question not saying "APV ultimate" we should treat it as APV Unpaid, is that correct? Since I did see just "APV" in other question, which is a bit confused.

Comments

  • Yes, it can be a bit confusing. Generally, APV refers to unpaid amounts because amounts that are already paid don't need to be discounted (or have PfADs applied). In this question however, the "ultimate" data apparently includes APV of the unpaid amounts added to the paid amounts.

    You can usually tell whether a triangle is showing unpaid amounts or ultimate amounts because an unpaid triangle will generally decrease across rows and eventually become 0 when everything is paid. On the other hand, a triangle of "ultimates" will generally be increasing and eventually converge to the true ultimate which is a non-zero value.

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