Hostname: page-component-cd9895bd7-dzt6s Total loading time: 0 Render date: 2024-12-29T12:27:27.889Z Has data issue: false hasContentIssue false
  • English
  • Français

With Profits Maturity Payouts, Asset Shares and Smoothing

Published online by Cambridge University Press:  03 October 2014

A. M. Eastwood ,
M. C. Ledlie ,
A. S. Macdonald  and
D. M. Pike
A. M. Eastwood
Affiliation:
Bonus and Valuation Research Group of the Faculty of Actuaries
M. C. Ledlie
Affiliation:
Bonus and Valuation Research Group of the Faculty of Actuaries
A. S. Macdonald
Affiliation:
Bonus and Valuation Research Group of the Faculty of Actuaries
D. M. Pike
Affiliation:
Bonus and Valuation Research Group of the Faculty of Actuaries
Get access

Abstract

1.1.1 The Bonus and Valuation Research Group of the Faculty of Actuaries began the work which eventually led to this paper towards the end of 1991. About this time there was considerable speculation that levels of maturity payouts on with profits policies might be significantly in excess of the level that could be justified by the actual investment earnings underlying the policies. The initial aims of the research group were to:

(a) examine this claim;

(b) consider to what extent overpayment, if any, could be explained by the smoothing methods that might have been used by offices; and

(c) examine the practical consequences of continuing to adopt those smoothing methods.

Type
Research Article
Information
Transactions of the Faculty of Actuaries , Volume 44 , 1992 , pp. 497 - 575
Copyright
Copyright © Institute and Faculty of Actuaries 1992

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

(1)Allanach, M. C. (1964). The treatment of Expenses in the Calculation of Ordinary Branch Premiums. Transactions of the 17th International Congress of Actuaries, II, 15.Google Scholar
(2)Asbury, C. J. (1962) Ordinary Branch Life Premiums in Modern Conditions. T.F.A. 27, 289Google Scholar
(3)Benz, N. (1959) Some Notes on Bonus Distributions by Life Offices. J.I.A. 86, 1.Google Scholar
(4)Brindley, B. J.et al. of the Policyholders' Reasonable Expectations Working Party of The Faculty and Institute of Actuaries. Second Report, October 1992.Google Scholar
(5)Carr, P. S. & Forfar, D.O. of the Bonus and Valuation Research Group of the Faculty of Actuaries (1980) Studies of Reversionary Bonus using a Model Office. T.F.A. 37, 91.Google Scholar
(6)Dyson, E. J. W. & Elphinstone, M. D. W. (1959) The Expenses of British Life Offices. J.I.A. 85, 211.Google Scholar
(7)Forfar, D. O.et al. of the Bonus and Valuation Research Group of the Faculty of Actuaries (1987) Bonus Rates, Valuation and Solvency during the Transition between Higher and Lower Investment Returns. T.F.A. 40, 490.Google Scholar
(8)Lang, J. & Scott, W. A. (1993) Profit Reporting in a Mutual life Office. Presented to the Faculty of Actuaries, April 1993.Google Scholar
(9)Macdonald, A. S. (I 993) What is the Value of a Valuation? Proceedings of the Third AFIR International Colloquium, Rome, 1993.Google Scholar
(10) Money Management, With-Profits Surveys, May 1981, May 1991 and May 1993.Google Scholar
(11)Paul, D. R. L.et al. of the Bonus and Valuation Research Group of the Faculty of Actuaries (1991) Restructuring Mutuals - Principles and Practice. T.F.A. 43, 167.Google Scholar
(12) Planned Savings, May 28, 1975. With-Profit Survey 1975.CrossRefGoogle Scholar
(13)Radcliffe, et al. of the Committee on the Working of the Monetary System, Report. August 1959. HMSO, Cmnd. 827.Google Scholar
(14)Ross, M. D. & McWhirter, M. R. (1991) The Impact on Solvency and Policy Results of the Valuation Regulations Restrictions on Equity Yields.Google Scholar
(15)Tillinghast, , Asset Share Survey Results. May 1993.Google Scholar
(16)Wilkie, A. D. (1984) A Stochastic Investment Model for Actuarial Use. T.F.A. 39, 341Google Scholar