MadDoc wrote:alotoftalk wrote:New accounting rules saved them. Hopefully they were not too aggressive with their GPV.
Could you tell what's the difference between NPV and GPV?
An actuary would explain it better than I can.
But in short GPV assumes the insurer has a great eye and can see the future (more assumptions) while NPV doesn't assume the insurer knows everything that will happen in the future (less assumptions).
Danger is where the insurer doesn't have the right data and talent to make these GPV assumptions.
Investment philosophy development in progress...