Description: This paper examines inclusion of the value of future new business in value-added financial reporting. The objective of the paper is to develop methods to provide useful information to management that links the pricing, planning and reporting process.

Description: Multiple decrement theory traditionally is based on the assumption that competing causes of decrement are stochastically independent even though this assumption is usually not true in reality. This paper presents some fundamental results towards a dependent decrement theory. First, the author shows how to model dependence with copula functions, then he presents a theorem that characterizes the mathematical relationship between the crude and net probabilities when the decrements are dependent, and finally he applies the results by examining the effect of removing cancer from the United States population when cancer is correlated with the other causes of death. From Actuarial Research Clearing House 1994, VOL. 1.

Description: This paper is about a concept known as the 'rate of transmission of information' or, more simply, as the 'information rate.' The authors establish the equivalence of arbitrage-free economic systems and a generalized betting model in such a way that the interpretation of the information rate, as the maximum rate of increase of an investor's capital, is preserved. As a corollary to this result, they show that the difference in the information rate between models represents the achievable incremental return associated with the superior predictor model. From Actuarial Research Clearing House 1993, Vol. 3.

Description: Two different types of fertility are examined in this paper using the quinquennial age-specific fertility rates for years 1926-1989. The two types studied are: the total fertility rate and the generational fertility rate. The authors concluded that it is hard to predict the future trend of fertility rates using either of the ways of grouping the data. From Actuarial Research Clearing House 1993, VOL. 2.

Description: The goal of this paper was to establish the main results of assigning internal rates of retum to arbitrary financial projects in a more general setting than that found in the theory of Teichrow, Robichek, and Montalbano. From Actuarial Research Clearing House 1993, VOL. 1

Description: Ceding companies must react appropriately to changes in the substandard reinsurance market to avoid losses. By using the substandard/insurance pricing algorithms presented in this paper, ceding companies may develop an effective placement method and thereby avoid potential future losses. From the Actuarial Research Clearing House 1994 Vol. 2 .

Description: This paper provides a background about the beverage industry in Nigeria.It then identifies the risks faced by this industry, describes the current risk management process, and makes recommendations for changes.

Description: This is an abstract of the paper entitled 'Axioms for the Valuation of Payment Streams: A Topological Vector Space Approach' by Approach by S. David Promislow. From Actuarial Research Clearing House, 1994, Vol. 1

Description: In computing actuarial measurements, such as the moments of present value functions for insurance and annuities, the stochastic nature of the interest rate is commonly ignored. This paper treats the interest rate as a normal random variable and presents general formulas for the mean and variance of the present value function for insurance and annuities. An example demonstrating these formulas is presented. It is found that taking the force of interest to be fixed at a mean value results in slightly underestimating the actuarial present value along with the variance for both insurance and annuities.

Description: This paper develops a theory for the valuation of some kinds of interest sensitive cash flows. A process is derived which takes as input, assumptions about the capital markets and policy holder behaviour, and produces as output interest and decrement assumptions which can be used for conventional actuarial discounting. The methodology is illustrated using some idealized, but tractable, models of conventional non-par whole life insurance. The method is also applied to a simple Universal Life plan. The paper concludes by considering some of the problems encountered when applying the ideas to more practical problems.