IFoA SA2 case studies
IFoA SA2 · Put your knowledge to work in context.
SA2 Life Insurance is a Specialist Advanced (SA) subject in the Institute and Faculty of Actuaries (IFoA) qualification pathway, aimed at candidates who have completed the earlier Core and Specialist Principle stages and are moving toward Fellowship-level practice in life insurance. It suits actuaries working in, or moving into, life insurance roles - valuation, pricing, capital, risk, product development and reporting - who need to apply technical judgement to realistic business problems rather than recall formulas. The IFoA SA2 case studies are 5 cases and about 5,203 words.
1Distributing the inherited estate of a closed with-profits fund
Meridian Mutual closed its conventional with-profits fund to new business in 2016. The fund now holds 210,000 policies, £3.4bn of assets and £2.8bn of asset shares, leaving an inherited estate of about £600m on the fund's own calculation.
989 words, about 5 min2A bulk annuity quotation strained by matching adjustment eligibility
Northgate Life recently entered the bulk annuity market. It has been invited to quote for a £1.1bn pension scheme buy-in covering 9,200 members, roughly 60% of them already in payment.
960 words, about 5 min3Repricing individual annuities after a mortality improvement release
Halcombe Assurance writes level and RPI-linked immediate annuities in the UK. In-force business is £2.6bn across 31,000 policies; new business runs at about £400m a year, of which 55% is medically underwritten through a third-party triage service.
942 words, about 5 min4An IFRS 17 term assurance cohort that has turned onerous
Fenwick Life reports under IFRS 17 and groups its term assurance portfolio into annual cohorts of contracts issued in the same year. The 20X1 cohort - 40,000 ten-year level-term policies - was recognised with a contractual service margin of £85m.
1,298 words, about 6 min5Longevity risk transfer: a bank swap against reinsurance
Ashby Life has a £3.8bn book of in-payment pension annuities with a best-estimate liability duration of 14 years. Longevity risk accounts for 22% of its post-diversification SCR, and the risk margin is £400m on a Solvency UK basis.
1,014 words, about 5 min