AG 38 reserve calculation — ag38_reserve

Computes the main quantities in the Chapter 16 AG 38 reserve calculation, including the prefunding ratio, reduced deficiency reserve, Step (8) reserve, and final increased basic reserve.

Usage

ag38_reserve_ul(
  basic_reserve,
  deficiency_reserve = 0,
  excess_payment,
  nsp_required,
  valuation_nsp,
  surrender_charge = 0
)

Arguments

basic_reserve: Basic reserve.
deficiency_reserve: Deficiency reserve.
excess_payment: Excess payment or shadow-fund amount.
nsp_required: Net single premium required to fully fund the guarantee.
valuation_nsp: Valuation net single premium.
surrender_charge: Applicable surrender charge.

Value

A named list.

Examples

ag38_reserve_ul(
  basic_reserve = 10000,
  deficiency_reserve = 0,
  excess_payment = 60000,
  nsp_required = 100000,
  valuation_nsp = 150000,
  surrender_charge = 5000
)
#> $prefunding_ratio
#> [1] 0.6
#> 
#> $net_amount_additional
#> [1] 84000
#> 
#> $reduced_deficiency_reserve
#> [1] 0
#> 
#> $step8_reserve
#> [1] 89000
#> 
#> $increased_basic_reserve
#> [1] 89000
#> 
#> $final_reserve
#> [1] 89000
#>