Staff-T1

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Staff-T1
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  • There COULD be a significant financing component for both your scenarios. But it would need to be tested. If the premiums are received and service is provided within one year then there is no financing component period
    in Question 7b Comment by Staff-T1 April 12
  • That's the definition of a hybrid approach. You calculate the reference portfolio liquidity premium once and then add it to the risk free rate on roll-forwards. For part C, you are making adjustments to market and credit risk to make them compati…
    in Question 15 Comment by Staff-T1 April 12
  • Yes
    in Question 10 Comment by Staff-T1 April 12
  • The RA is also discounted, so you'd need to unwind that. And no, no one says LIC & RA. By definition the LIC includes RA so unwinding the discount on the LIC would include unwinding the discount on the RA also. For Q13 specifically, they probabl…
    in unwinding - setting closing rates Comment by Staff-T1 April 12
  • For PAA specifically, there is no ambiguity around the signs. It's always UEP - DAC so there wouldn't be confusion there. And being negative does not necessarily mean profitable specifically for the PAA
    in Question 3 Comment by Staff-T1 April 12
  • The date provided is at Dec 31 2023 and there are 100% of claim payments remaining which means the policy has not started providing coverage yet
    in sample-20 Comment by Staff-T1 April 12
  • If you are referring specifically to using MCT risk factors directly, then the diversification credit between lines of business and also between LRC and LIC is already implicitly accounted for. But if you are provided it explicitly, then yes subtrac…
    in Sample 20 Comment by Staff-T1 April 12
  • It's just a coincidence here. I wouldn't look too much into it
    in Fall 2019 q#23 Comment by Staff-T1 April 10
  • That's correct
    in CAS Sample Q25 - payment pattern Comment by Staff-T1 April 10
  • It's stated in the question that the company starts writing in 2023. You are then provided information on Dec 31 2023 so it's pretty obvious one year has passed
    in Q27 Comment by Staff-T1 April 10
  • I don't know anything about life insurance so I can't speak on that. What do you mean reversed for PAA? The PAA does not require an estimate for the FCF. They usually wouldn't provide you the FCF directly and you'd need to calculate it yourself, w…
    in Question 3 Comment by Staff-T1 April 10
  • They're both the same formula - One is just providing more information. Carrying amount would be the prior LRC that is being roll forwarded. The adjustments to a financing component are shown in sample 7 of the sample IFRS questions. I am not su…
    in LC calculation under PAA Comment by Staff-T1 April 10
  • Deferred Acquisition Cost And yes, always (0.5-1/3)
    in Sample-18 Comment by Staff-T1 April 10
  • Just reduce the CSM by 250 so you'll get 142.5
    in Q22 Comment by Staff-T1 April 10
  • No, I think you are right. F is supposed to include the words reinsurance premiums payable and other acceptable non-owned deposit, consistent with what's in the MCT. I'll fix that
    in Deduction from capital available (F) Comment by Staff-T1 April 10
  • risk attaching means the reinsurer assumes all risks written in a given period. Loss occurring means that the reinsurer only covers losses that occur during a given period
    in Q14 Comment by Staff-T1 April 8
  • That's part of the UPR calculation (Prem Received + Premiums Receivable - Earned Premium)
    in Loss Component Under PAA Comment by Staff-T1 April 8
  • It really boils down to experience and actually working on loss components and knowing when to disclose onerosity. This is probably not what you want to hear. That said, in the exam just explain more. For example, if you think having a higher COR th…
    in difference in onerous Q19 vs Q25 Comment by Staff-T1 April 8
  • All good
    in Effective vs Modified Duration Comment by Staff-T1 April 8
  • That's because you are viewing things at the end of 12 months (You have already paid out 52% of ultimate and are only left with 48% to pay out). So from months 12 to 24, you will pay out 20% of the total ultimate, but there is only 48% remaining to …
    in CAS Sample Q25 - payment pattern Comment by Staff-T1 April 8
  • Yes, they are paying the entire premium for 3 years up front. Technically, this means you can earn substantial investment income before your premium is "earned" for the latter years (2-3). This leads to the significant financing component
    in Question 7b Comment by Staff-T1 April 8
  • In 2015, they only provided you investment income which does not include realized gains while in 2018 it is net investment income which does include realized gains
    in Fall 2015 Q22 vs Fall 2018 Q24 Comment by Staff-T1 April 8
  • In Q19, that is very specific because onerosity means that you are loss-making. Having an actual COR > Planned COR does not necessarily mean you are loss-making, you could just be making less ( Note they do not say by how much you are worse than …
    in difference in onerous Q19 vs Q25 Comment by Staff-T1 April 7
  • They should both be the same. I have no idea why the formula's are set up that way. The only difference is one is on a quarterly basis and one is on an annual basis
    in Connecting MSA.Legend, 20.14 & 20.18 from CCIR and IFRS17 Discount Comment by Staff-T1 April 7
  • yes, but you'd be hard pressed to find any policies with 6 month coverage periods tho
    in Q14 Comment by Staff-T1 April 7
  • Yes, net income is always after taxes
    in equity formula Comment by Staff-T1 April 7
  • That's not right. Your net income is already net of taxes so how can that be total income taxes
    in Fall 2019 q#23 Comment by Staff-T1 April 7
  • I do not see what you are looking at. the closest is his section "The effective duration is harder to calculate, but it gives a similar answer to the modified duration when interest rate changes DO NOT AFFECT future cash flows" Which is a correct st…
    in Effective vs Modified Duration Comment by Staff-T1 April 7
  • That's not right - The source mentions this in section 13 - " To measure a group of contracts, an entity may estimate the fulfilment cash flows at a higher level of aggregation than the group or portfolio, provided the entity is able to include the …
    in under IFRS, what level of aggregation should be used for calculating FCFs Comment by Staff-T1 April 7
  • Yes to all 3. 1) Income in the numerator of ROE should always be post tax. In #25 F2017, there was no way to know how much income tax should be charged which is why that is fine. 2) Capital gains are included in investment income here: 1500 (inves…
    in 2017Fall - 25a Comment by Staff-T1 April 5