In part (b),since contract #2 is considered as Deposit Accounting. It should fall under R1 - fixed income asset?

To be more precise, it's the change in nonadmitted assets that are included in the surplus calculation.

I don't really understand why in this problem there is a difference between Ceded Discounted Reserves (Case+IBNR) and Ceded Reserves (Case+IBNR) times the discount factor. How do I know when to use w…

Hi,

For contract #2 I am using: