GAAP Formulas

Section B ILA201-U GAAP Formulas

GAAP Equity

paid-in stock + paid-in additional capital + retained earnings

GAAP EOY Equity

BOY equity + comprehensive income + owner transactions

GAAP Owner Transactions

capital contributions - dividends

GAAP Comprehensive Income

net income + other comprehensive income (OCI)

GAAP Net Income

Revenues - Expenses

GAAP Revenues

Premiums + fees + investment income + realized gains

GAAP Expenses

benefits + expenses - realized losses

Significance Ratio

PV(Excess Payments) / PV(Assessments)

LFPB(t)

PVFB(t) - NPR(t) * PVGP(t) = (LFPB(t-1) + NPR(t) * GP(t))(1+i) - Ben(t) = LFPB(t-1) + NP(t) + Accretion(t) - Ben(t)

DPL Profit(t)

(1-NPR) * GP(t)

DPL%

PV(0) Profits / PV(0) BOYIF

UPPEA(t)

.90 * CumulativeSurplus(t) - CumulativePHDivs(t)

LFPB Total Benefit Expense

Actual Benefits Incurred + Remeasurement Loss + Change in Reserve

UL DB Option A

max(Face, PHAB * 7702 Factor)

UL DB Option B

max(Face + PHAB, PHAB * 7702 factor)

UL DB Option C

max(Face + sumof(premiums) - sumof(withdrawals), PHAB * 7702 factor)

UL NAR(t)

(DB(t) / (1+ig)^(1/12)) - (PHAB after prem and exps)

DIG-B 30 IRR

IRR = (GMMV / Host(0))^(1/T) −1

DA Deposit Ratio

PV(Bonus) / PV(PHAB)

DA SIL(t)

(SIL(t-1) + DepositRatio * PHAB(t))(1+i) - Bonus(t)

Short Duration DAC(t)

DeferrableCosts * Unearned Prem / Total Prem

LFPB Remeasurement Loss

Revised BOY BenLiab - Original BOY BenLiab

LFPB Change in Reserve

Revised EOY BenLiab - Revised BOY BenLiab

LFPB Profit Emergence

Prem + InvInc - DB - DacAmort - NonDefExp - IncrLFPB - IncrDPL

LFPB Source of Earnings

Premium Load + Int Spread - Acq costs - other exps - benefit deviation + other reserve unlocking

attributed fee %

min(1, Avg PV of Excess Bens / Avg PV of Explicit Fees)

MRB Liability

Avg PV of Excess Benefits - AF% * Avg PV of Explicit Fees