Staff-T1
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Yup I think this explains why registered reinsurance risk is considered in the credit and not insurance section
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I'd memorise the definition of Overall Net Risk as well as OSFI's capital assessment criteria too
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I'm looking at the P&L statement and "Interest revenue on financial assets not measured at FVTPL" is in the pdf. Yes I would assume so, although I think this is stuff that will not be tested. Yup @graham
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It is because unregistered reinsurers are not regulated by OSFI which means they would logically be higher risk than a registered reinsurer that is regulated by OSFI. As to why they are in different sections, I am not too sure about that tbh
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You are looking at the LIC and not the LRC here
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Equity accounted investees are the profits earned from your ownership in other companies so it would make sense to include it in the net investment income. MSA and the annual return uses different formulas I suppose (looks like MSA includes unreali…
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Actuarial certifications are any reports in which an actuary provides an opinion -> I don't think Graham explicitly states it in other sections. For example, AA reports and filings require a certified opinion from an FCIA
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MfADs are no longer on the syllabus. Problem with the CAS is they removed MfADs because of IFRS17 but did not update their prior papers with dependencies to MfADs which is sloppy on their end
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yup you are right @graham
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I am confused as to where you are getting your formula from (including AOCI). Is this something you came up with yourself? The numbers you should be using to calculate this as per the CCIR instructions are coming from page 20.22
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When the insurer selects the OCI option
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1) These are just examples of where actuarial certifications are required. The wiki doesn't go into specific details since they are covered in other sections. 2) No, but MfADs should just be replaced with Risk Adjustments (MfADs under IFRS 17) @gra…
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Net income already takes into account income taxes so you wouldn't have to assume anything here
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Yeah you are right - This is just meant to illustrate the point about the mismatch. I personally find it easier to try to visualize the concepts using numbers else it'll be very abstract and convoluted Your understanding is also right for the secon…
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1) you are expected to know this since it says it is from page 20.20 line 13 which is on a gross basis. 2) Yep although possibly with some modifications: you'd use AIC instead of APV of ceded for example. Tbh this is not clear since the paper is st…
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Inherent value just means the value remaining in the contract. If you have less value left, it is easier to exit the contract as there will be less costs which increases liquidity
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The effects of changes in climate risks are not a steady linear change over time. There are jumps (i.e. the government increasing the carbon tax drastically in a year which increases transition risk)
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Yes they are the same
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This is just estimating the payment patterns of the LRC, similar to what you would do for the DPAC under IFRS 4: * Estimate a payment pattern directly for the LRC * Start from the LIC payment patterns and make and adjustment
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What is confusing here is that this is the CSM for the ARC not the LRC which means signs are swapped. For risk adjustment, just make sure its sign is always the same as your PV of outflows
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The only difference between the GMA and the PAA is the existence of a CSM/LC. Without it, you will have GMA = PAA. I think this will answer your second point
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* For Deferred Acquisition expenses, you can choose to not recognize them at once. For example: If you have acquisition expenses of 100, you can recognize 25 every quarter. * If an insurance contract is profitable, we expect the PV of cashflows goi…
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Best-Estimate-Liability
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I don't like the signs here but in general: CSM = PV Outflow - PV Inflow + RA However, in this case you would need to do: -750 - (-500) -(-50) to get the CSM. This goes back to the fact that you need to understand what the CSM/LC represents (unea…
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Yes that is correct
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Point 2: This is talking about the OCI option for recognizing in P&L/AOCI the change in FCFs due to changes in the discount rate. Point 3: It's just saying your portfolio choice will determine the contract boundary of your contracts
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A policy is normally sold a couple of months before the contract coverage period begins. For example, a policy with coverage period of Jan 1 2022 - Dec 31 2022 could be sold in October 2021. Your date of initial recognition would be Jan 1 2022 while…
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It means grouped together for purposes of reinsurance, not grouped together for measurement. An example would be having a portfolio of personal Auto with groups of contracts defined to be Alberta and Ontario. The reinsurance contract will cover …
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Investment income does not include unrealized gains
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It's because there are only a few cases in the syllabus which you can relate to. The question is open ended so you could argue the other way round if you had another case as an example (which is not in the list of cases). Generally yes for your last…