副本Profit Testing(1)

副本Profit...

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Independent Rates of Decrement x 40 0 0.1 41 0 0.05 42 0 0.05 43 0 0.05 Step1- Convert Independent to Dependent Rates x 40 0.000749 0.099961 41 0.000938 0.049976 42 0.001076 0.049972 43 0.001178 0.049970 Step 2 - Project the Unit Funds Year 1 Year 2 Year 3 Value at Start of Year - 500.983 1,555.400 Premium Received 1,000.000 1,000.000 1,000.000 Premium Allocated 500.000 1,025.000 1,025.000 B/O Spread 25.000 51.250 51.250 Interest 28.500 88.484 151.749 Management Charges 2.518 7.816 13.404 Vaue at end of the Year 500.983 1,555.400 2,667.495 Step 3 - Project the Non-Unit Fund Year 1 Year 2 Year 3 Premium Unallocated (+) 500.000 -25.000 -25.000 B/O Spread (+) 25.000 51.250 51.250 Expenses/Comm (-) 350.000 75.000 75.000 Interest (+) 7.000 -1.950 -1.950 Management Charges (+) 2.518 7.816 13.404 Extra Mortality Cost (-) 2.619 2.293 1.434 End of Year Cash Flow 181.898 -45.177 -38.730
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Unformatted text preview: Step 4 - Calculate the Expected p.v. Of Profits and Profit Margins Year 1 Year 2 Year 3 Probability in Force 1.00000 0.89929 0.85350 Discount Factor 0.92593 0.85734 0.79383 Expected Present Value of Profits 168.42420 -34.83120 -26.24097 APV(Profits) (1) Expected Present Value of Premiums 1,000.00000 832.67667 731.74245 APV(Premiums) (2) Profit Margin = (1)/(2) Zerorizing Future Negative Cashflows d x q w x q d x aq ) ( w x aq ) ( t=3 t=2 t=1 4 = V V 3 V 2 V 1 0.899291 1.000000 0.949086 0.899291 0.948951 0.853504 0.948852 0.809934 Year 4 2,667.495 1,000.000 1,025.000 51.250 218.475 19.299 3,840.421 Year 4-25.000 51.250 75.000 -1.950 19.299 0.188 -31.589 Year 4 0.80993 0.73503 -18.80595 88.54608 642.95174 3,207.37086 2.76% x ap ) ( ) ( 1 ap t-30.374 64.9554 102.7164...
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This note was uploaded on 06/12/2011 for the course ASB 1001,2522, taught by Professor Nicole during the One '09 term at University of New South Wales.

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副本Profit...

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