Pricing a Commutation - Step 3: Tax Effects
A bit confused with this example, how were the insurer's ($10) and reinsurer's tax (-$60) benefits calculated?
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A bit confused with this example, how were the insurer's ($10) and reinsurer's tax (-$60) benefits calculated?
Comments
Sorry, I just made those numbers up for the purposes of the example. I didn't provide enough information to actually do the calculations in that particular case.
I edited the wiki article to make that clearer.
No problem! Thank you for the clarification!