Home > Uncategorized > Subsidiary RBC Allocation

Subsidiary RBC Allocation

September 7th, 2011

Reminder: there may be older blog postings that do not appear in the “recent posts” section

A lot of people have been asking about how to allocate the RBC from subsidiaries to R0, R1 etc:
-as you probably know, the RBC from insurance subsidiaries goes to R0
-also, the RBC allocation from investment subsidiaries depends on the investments of the subsidiary (we will allocate to R1 or R2 depending on if it is a debt or equity investment). In addition, these investments should be included in the parent’s bond concentration charge and asset concentration factor calculations
-non insurance subsidiaries: this is the tricky one. It depends on how the insurer has invested in the subsidiary. If it is an equity investment (the more likely option), we should include in R2. If the insurer owns bonds, include in R1. If the question doesn’t mention, I’d assume equity and answer accordingly

Angelo Uncategorized

  1. No comments yet.
  1. No trackbacks yet.