ChristoRoyer
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Concerning the question of jjj820 on May 4th, do you have an idea? (Sorry for poking you like that, I just assumed the message got lost because of mine) I never thought of that, but I'm curious about that. I understand how we determine if a group i…
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One way I could interprete that is that managing the RSP and FARM is not really the goal of FA. The goal of FA is ensuring available coverage for all [...]. Managing the RSP and FARM is simply one way to attain this goal. If the goal can be achiev…
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Makes sense, thank you!
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Well because one of the component of financial resources is Capital & Surplus, isn't it? But by seeing your reaction, I guess that Capital Available is not the same!
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"Capital available uses the earthquake reserves (what is being calculated in the question) and not the earthquake premium reserve." Isn't it like a circular reference? Capital Available includes Earthquake Reserves, but to calculate the Eathquak…
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"Also, your LRC in (a) should be 8 not 10. The LC is not part of the LRC" This got me really confused. LRC Excl. LC=8 and LC=2 Why isn't LRC=10? Since LRC = LRC excl. LC + LC? Like the example at the top of this discussion
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And concerning Q3, am I right to say that 5 too will be zero? Since it will be recognized as expense directly, we don't need to account for it in the LRC (since we won't amortize it)
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When it is said that way it actually makes sense ahah Thank you! But let's say the insurer has already received the premium and paid the acquisition expense. Can we calculate LRC "at initial recognition" as: Received Premium …
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But in the answer sheet, it literally say that APV = Fulfillment Cashflow + RA. Was it an error in this case?
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Great thank you. And I guess if it is not obvious we can just make an assumption and saying "I assume FCF = Fulfillment Cash Flow and it includes the RA" will be enough
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I'm not sure at all, but if I had to guess, I would say it is in pages 70.50 (Registered) and 70.60 (Unregistered) in PC2. There is a section about receivable from Reinsurance. There is no separation betwen Unearnd Premium and Unpaid Claims, but thi…
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Another question I have for this question: In order to get the PAV, we add the FCF to the RA. However, if I remember well, in the IFRS-2 text, it states that RA is part of the FCF. Since FCF is not the same thing as Present Value of Future Cashflow.…
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I'm reviving this old post instead of making a new one, but my question is not related to the previous. In this question, is there a reason we can assume that Asset - Equity = NET Liability? I would ave assume that it was Total Liability instead. …
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As you said, 20.12 and 20.14 are different becase of their breakdown. 20.12 is shown by measurement component and 20.14 by LRC vs LIC Since 20.12 and 20.14 shows basically the same information, different breakdown (well, in 20.14 there are also …
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Concerning the same question, I see that in calculating the Capital Available (in order to use 10% of it) in part a), the Earthquake Premium Reserve is not included. However, in the Category A capital, there is: "Earthquake, nuclear and general co…
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The formula is: Underwriting Income (Loss) + Net Investment Income + Other Revenue and Expenses - Total Income Taxes Since Capital Gain was not in the formula, I assumed they were not considered. With your reaction (and after looking at more for…
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There is something I noticed in this question that I wanted to confirm: When calculating the other expenses for the Profit/Loss, we subtract the totality of the Non Directly attributable acquisition expenses. Without amortizing it. I understand t…
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I notice in the question #7 that "Insurance Revenue Financing Component" is added to the earned premium. I guess that means they are both considered part of the Insurance Revenue. However, in the formula from the text for LRC at subsequent calculat…
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Oh I see! So in Nova Scotia, despite the fact that the the pool now accepts all drivers (instead of just "Inexperienced with good experience") there is still the limit of one driver with less than 6 years of experience. I though that both rules were…
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Just to be sure, is PPA the same thing as PPV (Automobile vs Vehicle)? I often see both abbreviation but I'm not sure if they would be both accepted by the CAS. I might also be a question of English vs French
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Let's say we use Option #2, but with today's limits. Would it be something like that? * The amount owed for unpaid claims to the insured is $399K. * For Unearned Premium, it is 350$ * Since the new limit for property is $500K, PACICC gives 39…
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Thank you, this explains a lot of thing I didn't understand when comparing the formulas! Why make it simple when we can make it complicated? That's no fun, right?
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I have a question on a) i), the Capital Gains are excluded from the calculation of the Net Income. Is it because we assume they are already included in the Net Investment Income? Or there is another reason?
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"Just to make it clear, the MSA text says "[...] investment income (excluding gains) [...]", so I guess it refers to Page 20.30 line 32 minus line 34, and not simply Page 20.30 line 32, right?" I think I am blind. I cannot find 20.30 anywhere. In…
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Okok I see! Is that the reason too why in this formula we add the unamortized acquisition cashflow? In the LRC from the IFRS17 texts, we need to subtract these acquisition cashflow. So in the MCT text formula, it is added to kinda negate the fact …
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So the FCF in LIC and LRC are the same? I'm a bit surprised to hear that. I thought that the Future Cashflow to be used in LIC was only for the expected payment on incurred events. And the opposite for the LRC, that was the PV of expected future ca…
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" This interest needs to be earned, similar to premium. The deduction at the start is because you have "earned" 1/3 of the interest component, similar to how you would deduct EP from your PAA LRC." This is exactly what I meant by recongnized reve…
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Quick question: Is it right to say that the Financing Component is like the "Recognized revenue on interest" (including from previous period) ? Which is why in the end it is deduced from LRC@start. Of course I'm probably oversimplyfing thing, but…
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Indeed, there was a missing word. Element 8 of the same page: "Mean Average accident of premium liabilities" And thank you for the references
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I have another question about this case. Might as well ask it here instead of creating a new post. One of the issue with this case is whether the physical and psychological pain should be assessed separately. I'm not sure what was the conclusions…