Hostname: page-component-cd9895bd7-mkpzs Total loading time: 0 Render date: 2024-12-27T19:24:36.835Z Has data issue: false hasContentIssue false
  • English
  • Français

Review of the Principles of Life-office Valuations

Published online by Cambridge University Press:  18 August 2016

F. M. Redington
F. M. Redington
Affiliation:
Prudential Assurance Company Ltd.
Get access Rights & Permissions [Opens in a new window]

Extract

The original purpose of this paper—undertaken at request but not unwillingly—was to review the principles and practice of life-office valuations in the light of modern conditions. It was difficult, however, to deal satisfactorily with the principles of valuation in vacuo without reference to more fundamental principles. As a consequence the paper has become more ambitious in its scope than originally intended—and has threatened to run away with itself. The reader will perhaps be less disappointed if he is warned in advance that he is to be taken on a ramble through the actuarial countryside and that any interest lies in the journey rather than the destination.

Type
Research Article
Information
Journal of the Institute of Actuaries , Volume 78 , Issue 3 , December 1952 , pp. 286 - 340
Copyright
Copyright © Institute and Faculty of Actuaries 1952

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

page 289 note * (1) The incidence of tax is assumed to be appropriately allowed for, e.g. tax is deducted separately from expenses and interest in the U.K. (2) Surrenders are gnored, the assumption being that the values granted are kept within the amounts vailable.

page 290 note * By analogy with equilibrium in statics we could describe a fund as immunized if the first derivative is zero, and the immunization as stable stable or unstable according the second derivative is positive or negative.

page 300 note * It may be that with-profit premium rates are left unchanged for many years, and that the nominal formula employed becomes obsolete and out of step with current experience. It is desirable, however, to re-express the premium rates actually charged in the light of the actuary's assessment of the future experience at the time of issue. The re-cast formula expresses the plan or intention at the time a policy is issued, and it is a valuation on the basis of this original plan which earns the title of a ‘natural valuation’.