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Sorry, I don't see the SA formula. I see this in the Alice solution to 2017.S.11: I think Graham revised the notation since we had the dialogue above.
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Yes, because UIE is the Annual Statement "in the main," whereas the other sections are "schedules." If a schedule letter or page number is not given, it's understood that it is from UIE.
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Labels are now fixed. Thanks for pointing it out.
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This is no longer on the syllabus as of 2024.
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Yes, each bullet in the answer key is a stand-alone answer.
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Correct.
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These are from the Underwriting and Investment Exhibit.
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For your Q2, you are right that there is a discrepancy in what you point out. Graham says that this is how the numbers worked out when he rearranged the givens of the original problem to work them into his version. So, don't be concerned about this …
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Graham pointed out that IFRS 17 states that FCF can be treated either as an asset or a liability, depending whether the losses or the premium is bigger. That would mean that FCF itself does not give a directional guidance of the sort you're seeking.
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From the Odomirok text, I understand FCF to be a component of an asset, not a liability.
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Correct on Q1. We will discuss your Q2 and get back to you.
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I don't follow the second part of your equation, but the rest of your comment is correct.
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amberxmc, has your question been answered by the previous posts here?
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I don't follow where to find "Tip - Trick 2", but the statement is correct: Investment Revenue = Investment Income + Realized Capital Gains
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The solution reduces surplus for the increase in DIT: - (28 - 24)
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DTA is explained on page 324 of Odomirok. The netting against DTL is explained in item 3 on page 325. It doesn't say anything to this effect, but presumably, a negative net DTA is possible.
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Odomirok does not make an explicit statement on this either way, but I think this is the logical way to proceed.
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The purpose of RBC is to define a capital amount for contingencies. R5 is partially based on company's performance. If it performed really well (i.e. low loss ratio), then the formula can produce a negative charge, as seen here. However, the other r…
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Yes, it does look like a blatant incongruency. Odomirok's Appendix I has a section for calculating IRIS ratios. They simply state this calculation in this form and move on. This says to me there isn't an easy way to find out about this.
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Sure, good luck.
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As per my previous comment, the reason for this is out of the scope of 6U. It seems reasonable that if they exclude borrowed money from the denom, they should exclude the returns on it from the num.
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That is a valid point. I also think that liquidity plays a part. "Income tax recoverable" is asset line 18.1 on the BS. But it is not an asset you can buy and sell in the market, like bonds. Being that way, you count on its repayment to you, which m…
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"Traditional" is not a very strict way of categorizing insurance. Here, they used it to differentiate RRGs and insurers, in the context of regulation. Elsewhere, it may be used to differentiate insurtech vs non. I have not encountered the ones you m…
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There are Alternative Risk Transfer (ART) instruments that are hybrids of insurance and finance products, which are becoming more widely used. This is not a part of 6U syllabus.
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Yes, this is a typo. It should be "reinsurers."
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R0 is mostly for holdings in subsdiaries. It is definitely in the "asset risk" category.
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Asset line 16.1 is "amounts recoverable from reinsurers." If they mean reversing this line for the extra reinsurance provision, then both the Balance Sheet and the Income Statement reflect it. The "previously utilized" phrase is cryptic. I don't …
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I expect that federal government is the party keeping tabs on the 100B limit. When they see that they have reached the limit, for any further loss reimbursement requests coming from insurers, government informs that the limit has been reached and th…
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The same paragraph concludes: ". . .The minimum reserve provision for reinsurance is recorded as a liability and the change between years is recorded as a gain or loss directly to unassigned funds (surplus). Any reserve over the minimum amount s…
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I think this previous post will be helpful: https://battleacts6us.ca/vanillaforum6us/discussion/621/section-thought-process