On a New Method of Calculating Model Office Reserves

Extract

The object of the present paper is to examine a formula deduced by Mr. Duncan C. Fraser in his “Notes on a Stationary Insurance Fund and on a Uniformly Progressive Insurance Fund” (J.I.A., vol. lvii, pp. 231, et seq.); and to investigate whether, and if so, to what extent, the formula can be put to practical use. In considering a uniformly progressive life assurance fund, where the numbers of new entrants in successive years are continually increasing at the rate of (1 + i'), Mr. Fraser derives the expression