A5(CSM) in Un-ded

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in OSFI.MCT

Hi, I was reading the source text for this section and under GMM:

If the contractual service margin (CSM) of a group of reinsurance contracts held represents a net cost of purchasing:

  • Expected cash inflow from reinsurer + risk adjustment (RA) + CSM + unamortized reinsurance commission

If the CSM of a group of reinsurance contracts held represents a net gain of purchasing reinsurance:

  • Expected cash inflow from reinsurer + risk adjustment (RA) − CSM + unamortized reinsurance commission

Is it safe to say that under GMM,
A = Expected cash inflow from reinsurer + risk adjustment (RA) − |CSM| + unamortized reinsurance commission

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