I had assumed that all non-life insurance companies segregated their portfolios into a FI/AML portion and then a surplus portfolio but this Q doesn’t mention anything about that at all - is it only specific non-life compani9es who would do that depending on what they’re insuring? If so, pls can you help me with which ones do what??? Thanks!
I think it sort of implies there in the discussion part. “Overall objective should be to maximize total after-tax return within a prudent A/L framework that also pays attention to surplus growth.” i guess poorly worded. But I would believe that in the exam, we should try and mention the FI/ALM and surplus portfolio structures
Thanks for the response sparty!
sparty419 Wrote: ------------------------------------------------------- > I think it sort of implies there in the discussion > part. “Overall objective should be to maximize > total after-tax return within a prudent A/L > framework that also pays attention to surplus > growth.” > > i guess poorly worded. But I would believe that in > the exam, we should try and mention the FI/ALM and > surplus portfolio structures I wasn’t comfortable with Schwezer’s answer either. I will definitely take sparty’s approach in the exam…