Calculate premiums for long-term life and health insurance and annuity contracts based on a specified profit objective.
Free SOA Exam ALTAM (Advanced Long-Term Actuarial Mathematics) lesson in Profit Analysis. 11 min read, ~1,691 words.
Profit vector: end-of-year cash flow per policy in force at start. Profit signature:, and for. NPV at risk discount rate:. Set NPV equal to target, solve for. Profit margin: NPV divided by EPV of premiums at the RDR. Common target 5 to 15 percent. IRR: the that makes NPV zero...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- 4d
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