I am quite stuck because I do not know in what time unit to solve for in for this question. "A loan of $600,000 is repayable by an annuity payable half-yearly in arrear for 10 years. The half-yearly repayment is calculated at an effective rate of interest of 5% per annum and decreases by $100 each half-year. Which of the following is the amount of the first repayment?" If it increases by 100 each half year, does that mean it is 100*(Ia)20? or 200(Ia)10? are these both equivalent? What... How to solve for increasing/decreasing annuities payable pthly ..read more

Can you kindly help me understand this on page 22: The large loading to pay for the guarantees means that reviewable IP rates can look very attractive to prospective policyholders.” I thought large loading would cause the premium rates to be less attractive to policyholders ..read more

The 2024 exams for Subjects CB1 and CB2 were originally due to be in Objective-Based Assessment (OBA) format. However, in Autumn 2023, the IFoA deferred the introduction of OBA exams and announced that the April 2024 exams would be in the usual, established format. At the time of writing (mid-April 2024) it is our assumption that the September 2024 exams will also be in the usual, established format. If anything about the September exams changes, impacting on the support we will offer and... September 2024 exam ..read more

The 2024 exams for Subjects CB1 and CB2 were originally due to be in Objective-Based Assessment (OBA) format. However, in Autumn 2023, the IFoA deferred the introduction of OBA exams and announced that the April 2024 exams would be in the usual, established format. At the time of writing (mid-April 2024) it is our assumption that the September 2024 exams will also be in the usual, established format. If anything about the September exams changes, impacting on the support we will offer and... September 2024 exam ..read more

can someone clear the doubt if by mistake wrong numbering was done on one answer in the cb2 word file will that be awarded marks or straight zero for that answer ..read more

I'm having some difficulty keeping track of how many points I have given for an answer. May I know if I can enumerate my answers like so: The insurer may... This will... And... Many thanks in advance ..read more

We have been told the following information: Liabilities Assets PV 100m 90m Duration 20 22 Yield 1.5% 1.55% Discuss the effectiveness of this strategy for hedging interest rate risk? I calculated the PV01 of assets and liabilities, then a interest rate ratio of just less than 1 - concluding it is a good hedge. There are no calculations in the answers. Would this sort of calculation gain any... Effectiveness of Interest Rate Hedge - September 2022 1)ii ..read more

The question has asked for a benchmark performance for years 1 (-3.62%) and 2 (10.83%), followed by a benchmark performance over the two years (6.82%). (ii) and (iii). It then asks for the relative performance for years 1 and 2, then the relative performance over the two years. Fund performance is 1.33% Y1 and 11.84% Y2, and 13.33% total, this gives relative returns of 4.95% and 1.01%. (iv) For the relative performance over the two years, the answers have: (1+ year 1 relative... Relative Performance Over 2 Years - April 2022 Question 8) v ..read more

How concise can you be in your answers for SA/SP exam? For example, if the question is like "what should the insurer consider before launching product X", can you just write: - Target market is? - Its current size? - Its future size? - Expected sales volume sufficient to recover development cost and make some profit? Thanks in advance ..read more

What does that mean by IBNR reserve at UW Year level compare to that of IBNR reserve loading at Company level? I assume that: IBNR can be at product line level or Company level. Eg: IBNR for Public Liability product, IBNR for Motor, IBNR for whole company level. IBNR triangle must divide into Uw Year/ Dev Year pair, no matter what Product line level or Company level. Please, enlighten me on this, Thanks very much ..read more