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Asset Shares and their Use in the Financial Management of a With-Profits Fund

Published online by Cambridge University Press:  10 June 2011

P.D. Needleman  and
T.A. Roff
P.D. Needleman
Affiliation:
Tillinghast-Towers Perrin, Albion House, 55 New Oxford Street, London, WC1A 1BS, U.K.
T.A. Roff
Affiliation:
Ernst & Young, Rolls House, 7 Rolls Buildings, Fetter Lane, London, EC4A 1NH, U.K. Tel: +44 (0)20 7951 2112
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Abstract

This paper describes current asset share techniques, examines alternative asset share philosophies and discusses practical issues associated with the calculations. Alternative approaches to smoothing payouts using asset shares are examined. A financial management framework is described which provides information on the financial position of a with-profits fund. A central part of the framework is the concept of risk-based capital. The factors to be considered in determining risk-based capital are described and examples given of the possible capital needs of with-profits business.

Keywords

Asset SharesEstateFinancial ManagementRisk-Based CapitalWith Profits
Type
Sessional meetings: papers and abstracts of discussions
Information
British Actuarial Journal , Volume 1 , Issue 4 , 01 October 1995 , pp. 603 - 688
Copyright
Copyright © Institute and Faculty of Actuaries 1995

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References

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