PBR Formulas

Formulas for Section A.2 on ILA201

VM-20 minimum reserve

NPR + max(0, max(DR, SR) - NPR) - DPA

tVx Term NPR

PVFB(0) + EA(0) - PVNP(0) if t = 0, PVFB(t) - PVNP(t) if t > 0

Term EA(0)

.0025 * Face

Term Adjusted Gross Premium (AGP(t))

0 if t = 0, .90 * GP(t) if 0 < t < 5, GP(t) if t >= 5

Term Net Premium %

(EA(0) + PVFB(0)) / PVAGP(0)

Term Scalar % PS

1.35 * PVFB(0)PS / PVNP(0)PS

Term Scalar % LP

(PVFB(0) + EA - 1.35 * PVFB(0)PS) / PVNP(0)LP

ULSG Expense Allowance

GP + .0025 * Face if t = 0, .10 * GP if 0 < t < 5, 0 if t>= 5

ULSG PE(t)

r^P * EA(0)/ax if t = 0, PE(t-1) + r^P * EA(t)/a(x+t) if t > 0

ULSG r^P

PVFB(0) / PVGP(0)

ULSG NP(t)

PB(t) + PE(t)

ULSG NPR(t)

min(1, FV(t)/GMF(t)) * (PVFB(t) - PVNP(t))

VA VM-21 Min Reserve

max(SR + ASPA - PIMR, CSV)

VA Stochastic Reserve

CTE 70 (best efforts) + E * max[0, CTE 70(adjusted) - CTE 70 (best efforts)]

VA Scenario Reserve

max(Starting Assets + GPVAD, CSV)

VA ASPA

max(Unbuffered ASPA - Buffer, 0)

VA Unbuffered ASPA

PPA - CTE 70 (adjusted)

VA Buffer

CTE 70 (adjusted, unfloored) - CTE 65 (adjusted, unfloored)

VA PPA

CTE 70 (adjusted) except using prescribed assumptions (CTEPA method)

Excess SR or DR for indv policy

(NPR for Policy i / NPR for Group) * max[0, max(SR, DR) - (NPR - DPA)]

VA Total asset requirement (TAR)

VM-21 Reserve + RBC Requirement (C3) for products subject to VM-21

VM-20 DR

PVFB + PVFE - (PVGP + PV(LoanPmts) + PV(XSA)) - PIMR