javid

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javid
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  • Hi genevieve, I would write it as: (reversing the order in the numerator) Excess/Deficiency Amt = (Ult @ 12 - Ult End)/(Ult @ 12 - Paid @ 12) Intuitively, if the ultimate as of 12 months is greater than the ultimate at the end, then we will…
    in 2016.Spring #14a - Undiscounted Excess/Deficiency Amount Explanation - Change in the Ult (shortcut) Comment by javid January 2019
  • As per the paper (http://www.cia-ica.ca/docs/default-source/2009/209138e.pdf, table 5.2), it is more so a higher ceded loss ratio. Here's how I picture it: if the insurer's ceded loss ratio is high and he is unable to recover from the reinsurer in t…
    in Identifying considerations for MfAD(re) Comment by javid January 2019
  • Yes, that is correct. As per the paper (http://www.cia-ica.ca/docs/default-source/2009/209138e.pdf): " While following Standards of Practice, an actuary could derive a discount rate adjusted by margin for adverse deviations that is less than 0%.…
    in when may MfAD(inv) < 25 bps? Comment by javid January 2019
  • Just looking back at the wording, it is said that "A 30% cap serves to dampen the operational risk margin for companies that have high-volume/low-complexity business with high levels of reinsurance." First thing I did when I read this sentence wa…
    in Cap on operational risk margin Comment by javid January 2019
  • Hi genevieve, Thank you for posting this. I think we may need to negate the numerator of your final formula but I will get back to you by end of day.
    in 2016.Spring #14a - Undiscounted Excess/Deficiency Amount Explanation - Change in the Ult (shortcut) Comment by javid January 2019
  • Just going back to the paper, it is said that "OSFI also expects an opinion signed by the AA and a memorandum, both covering the areas where the calculation required discretion or where significant technical calculations, methodologies and judgement…
    in Question about the opinion of the AA Comment by javid January 2019
  • Yes, you are right. I meant to say increase in NI.
    in Accounting for Bonds Comment by javid January 2019
  • Hi, I think there may be confusion when reading the tables in https://www.battleactsmain.ca/wiki6c/CIA.Accting. Hopefully, I can clear it up with an example. To support policy liabilities, we have an asset portfolio. Assume our asset portfolio…
    in Accounting for Bonds Comment by javid January 2019
  • @genevieve, I agree with you that the critical assumption here is that the bonds are priced at par, so amortized value = par value = initial price paid for the bond. Just adding some details as to why this assumption is required: In general, t…
    in 2016.Fall #13a Comment by javid December 2018
  • Good question! I would have to agree with you that if we are calculating the investment income on the UPR for 2014, we should use the investment/yield rate during that year. The CAS actually gives enough information (3rd and 4th triangles) to calcul…
    in CIA MfAD - Discounted LR Comment by javid December 2018