Ordered gross gain decomposition — decompGg

Decomposes total gross gain into interest, mortality, and expense components in a user-specified order.

Decomposes total gross gain into interest, mortality, and expense components in a user-specified order. The first two components are computed sequentially, and the last component is taken as the balancing item so that the components sum exactly to total gain.

Usage

decompGg_disc(
  VtG,
  Vt1G,
  G,
  i_assumed,
  q_assumed,
  r_assumed = 0,
  e_assumed = 0,
  s_assumed = 0,
  i_actual,
  q_actual,
  r_actual = 0,
  e_actual = 0,
  s_actual = 0,
  b = 1,
  order = c("interest", "mortality", "expense")
)

decompGg_disc(
  VtG,
  Vt1G,
  G,
  i_assumed,
  q_assumed,
  r_assumed = 0,
  e_assumed = 0,
  s_assumed = 0,
  i_actual,
  q_actual,
  r_actual = 0,
  e_actual = 0,
  s_actual = 0,
  b = 1,
  order = c("interest", "mortality", "expense")
)

Arguments

VtG: Gross reserve at duration t.
Vt1G: Gross reserve at duration t+1.
G: Gross premium.
i_assumed: Assumed annual effective interest rate.
q_assumed: Assumed mortality rate.
r_assumed: Assumed percent-of-premium expense rate.
e_assumed: Assumed per-policy expense.
s_assumed: Assumed settlement expense.
i_actual: Actual annual effective interest rate.
q_actual: Actual mortality rate.
r_actual: Actual percent-of-premium expense rate.
e_actual: Actual per-policy expense.
s_actual: Actual settlement expense.
b: Benefit amount. Default 1.
order: Character vector giving the order of decomposition.

Value

Named numeric vector.

Examples

decompGg_disc(
  VtG = 3950.73, Vt1G = 4607.07, G = 685,
  i_assumed = 0.06, q_assumed = 0.00592,
  r_assumed = 0.05, e_assumed = 0, s_assumed = 300,
  i_actual = 0.065, q_actual = 0.005,
  r_actual = 0.06, e_actual = 0, s_actual = 100,
  b = 50000,
  order = c("interest", "mortality", "expense")
)
#> total_gain   interest  mortality    expense      check 
#>   58.74630   23.00405   42.03750   -6.29525   58.74630 
decompGg_disc(
  VtG = 3950.73, Vt1G = 4607.07, G = 685,
  i_assumed = 0.06, q_assumed = 0.00592,
  r_assumed = 0.05, e_assumed = 0, s_assumed = 300,
  i_actual = 0.065, q_actual = 0.005,
  r_actual = 0.06, e_actual = 0, s_actual = 100,
  b = 50000,
  order = c("interest", "mortality", "expense")
)
#> total_gain   interest  mortality    expense      check 
#>   58.74630   23.00405   42.03750   -6.29525   58.74630