AAA Premium Deficiency Reserves Discussion Reports

Use this thread to discuss ANYTHING and EVERYTHING related to this syllabus reading.
Some possible questions include:

  • How can this reading be tested?
  • I don’t understand a specific topic/formula - Can we discuss this?
  • This reading gives me nightmares. Can we talk through it a bit?

Good luck!

anybody know why 12/31/2017 surplus (408) in the example on page 13 of source material dropped from 2016 (412)? I thought that if g/l is 0 for 2007, then the surplus won’t change from last year.

k, i think i got it figured out. It is because it assumes the actual g/l for 2007 is same as the projected g/l which is 6k. I think there is a disconnect between the b/s and the income statement in the 3 tables above.