| AXIS
Update Information |
| Update
Summary: |
Modco Reinsurance Method From The Direct Writer’s Point of View |
| Update
Type: |
Enhancement
|
| Version
# : |
12503001 (13 Dec 09) |
| Modules
Affected: |
Regular Life |
| Changes
Results: |
No
|
| GGY
Job # |
6928 |
| Detailed
Update Description |
Modco Reinsurance Method from the direct writer’s point of view is now available. A new option for it can be found under the "Reinsurance method" switch in the Reinsurance Terms assumption screen.
In order to use the modco method, the profit transfer frequency must be more frequent than modco adjustment transfer.
The following new lines were added to report the modco results.
In the Reinsurance Treaty category report, new supplementary lines:
• “Modco adj due to change in reserve”
• “Modco adj due to interest”
• “Modco reserve”
In the main Calendar year report, new lines:
• “Ceded modco adjustment” (In ceded cashflows section)
• “Modco adjustment” (In net cashflows section)
In the NAIC Financials report, new formula line for:
• “Reserve adjustments on reinsurance ceded”
• “Interest on reserve deposits”
Note: In US GAAP Financials, “Ceded other benefits” includes modco adjustment cash flow.
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