2018 Fall Q24

wilsonchan18wilsonchan18
in CCIR.ARinstr

Hi,

For the Net Income calculation, I realized the examiner report directly take only the Net Investment Income without taking the realized gain or loss. May I understand why?

Does that mean the NII=Investment Income - Investment Expense has already considered the Realized portion? And whereas the Unrealized falling under the OCI, shall be given from any question due to the exclusion from CIA.Accounting?

Thanks and Warm Regards,
Wilson

Comments

  • Staff-T1Staff-T1

    Yes, investment income = Realized Capital gains + interest + dividends - Investment Expense.
    You are right about the Unrealized gains also

  • wilsonchan18wilsonchan18
    edited March 2022

    Ok, but when I see the 2015 Fall Q22, why the Net Income actually need to take into account the Realize Gain even though have been considered the Investment Income already? It seems so confusing :neutral:

  • wilsonchan18wilsonchan18

    Or should it be that Investment Income does not include Realized Gain/Losses?
    Whereas Net Investment Income already consider the Realized Gain/Losses?

  • Staff-T1Staff-T1

    You are right. Net investment income considers realized gains/losses while investment income does not. Its made clear on the MSA report guide in the study kit, page 11 :)

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