IFoA SP2 case studies
IFoA SP2 · Put your knowledge to work in context.
SP2 - Life Insurance, formally titled Specialist Principles: Life Insurance, is an Institute and Faculty of Actuaries (IFoA) Specialist Principles examination. It sits at the specialist stage of the IFoA qualification, after the Core Principles and Core Practice subjects, and is aimed at candidates who intend to work as life insurance actuaries or who need a recognised specialist credential in that practice area. The subject matter is life insurance actuarial practice: the products, the reserving and capital frameworks, the modelling, and the professional judgement that surrounds them. This page is an independent study resource and has no official affiliation with the IFoA. The IFoA SP2 case studies are 5 cases and about 2,593 words.
1With-profits bonus decision for a closed fund
A UK life insurer's with-profits fund has been closed to new business since 2019. Assets are £1.4bn; supervisory liabilities are £1.25bn; the inherited estate after required capital is £90m.
540 words, about 3 min2Matching adjustment eligibility after a downgrade
A life insurer has £5.0bn of immediate annuity liabilities backed by a ring-fenced matching adjustment portfolio. The portfolio is £2.9bn A-rated corporate bonds, £1.2bn gilts, £0.6bn BBB infrastructure debt and £0.3bn equity release mortgages.
493 words, about 2 min3IFRS 17 transition approach and grouping
A life insurer is adopting IFRS 17 for a closed portfolio of 100,000 25-year level term assurance policies. At the transition date, the portfolio has 18 years remaining.
523 words, about 3 min4Reinsurance structure for a new term product
A life insurer is launching a 10-year level term product with a £300,000 sum assured and annual premium of £420. Expected mortality is 0.12% in year 1, rising 5% a year; lapses are 8% in year 1 and 6% thereafter.
509 words, about 3 min5Bulk annuity pricing and longevity risk
A life insurer is pricing a bulk annuity buy-in for a pension scheme with 1,200 pensioners and annual pensions of £6.5m. The scheme's own valuation shows liabilities of £118m using a 3.5% discount rate.
528 words, about 3 min