a. Valuation Balance Sheet for AXA Life Insurance Company as at 31st March 2019.
b. Find the Deficit / Surplus earned by the company for the period 2019.
c. Comment on the changes of surplus earned for 2019 and explain the effect of reduction of net liability,
Himayati Life Insurance is underwritten by AXA Insurance Gulf B.S.C., which is one of the largest insurance companies in the world. Himayati Life Insurance is offered to all customers of National Bank of Oman. The scheme offers two plans –
Basic and Premium; both insurance plans offer comprehensive protection, 24 hours a day, 365 days a year, the world over. As you are a trainee, actuaries explained to you that the Revenue account or Balance sheet of a life insurance company does not disclose the profit or loss for a given period.
To ascertain profits or losses of a life insurance company a Valuation Balance Sheet is prepared once in every two years. He provided you with amounts of balances of Life assurance funds for the current year and previous year respectively OMR 4,020,300 as of 31st March 2019 and OMR 5,850,275 as on 31st March 2018.
The net liability as per actuary’s valuation OMR 4,750,300 The following information also relates to the current period ending 31st March 2019: Premiums collected for the current period are OMR 873,000; an interim bonus of OMR 230,000 was paid during the period; Dividend still unpaid for the 31st March 2018 was OMR 35,000 and Surplus brought forward from the period ending 31st March 2018 was OMR 210,000. 9 Page Actuaries also told to prepare a valuation balance sheet with a reduction of 20% in of its net liability for the year-end of 31st March 2019 whereas there is no change in Balance of Life Assurance Fund and other information related to the current year.
