D.2 Distributable Earnings Flashcards

1
Q

How to calculate Distributable Earnings & after tax solvency earnings

A

DE = Solvency Earnings - Increase in RC

formulas:
Prod CF = Prem - Ben - Exp
Ben = benefits paid to PH
Exp = Expenses, commission
PT Solv Earn = Prod CF + II - Solv Rsv Incr  
AT Solv earn = PT Solv Earn - Tax
Tax = tax rate * PT solv Earn
DE = AT Solv Earn - RC increase + AT II on RC
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