Description: This paper attempts to develop an actuarial rationalization for the governance of a mutual life insurance company. It addresses setting surplus targets, long term growth objectives, internal performance accounting, and mergers and acquisitions. A discussion of the paper follows. From Transactions of Society of Actuaries 1979, Vol. 31.

Description: In this paper the author develops techniques for measuring GAAP return on total capital by line of business, where total capital includes “benchmark surplus,” the amount of statutory surplus set aside, in addition to reserves, to support in-force business. The author also shows how GAAP returns relate to the internal rate of return the actuary may have calculated to describe expected profitability on a statutory basis. Includes discussion and author’s review of discussion. From Transactions of Society of Actuaries 1982 Volume 34.