Challenge MCT - Capital available calculation (part a)

kybazzikybazzi
edited October 2025 in CAS Sample IFRS 17 Questions
  1. (Edit: sorry, I missed that this question was already answered here) Category B and C: Category B and C were not labelled as "B" and "C" but rather "Perpetual preferred shares" and "Subordinated debt". The Wiki mentions that we should not need to know how B and C are determined, but is it still recommended we memorize these items? If so, are there other details about B and C worth knowing?
  2. EPR: The Wiki says "The earthquake premium reserve (EPR) not used as part of financial resources to cover earthquake risk exposure" is a deduction. Just want to double check that if we just see "Earthquake premium reserve", then it's included in Category A, but if it's meant to be a deduction, it will always have that full verbose description?

Thank you for your help.

Comments

  • Staff-T1Staff-T1
    edited October 2025
    1. Nah just ignore it. It slipped my mind that 2.1.2 and 2.1.3 is excluded.
    2. The Earthquake reserve in category A is not just the EPR but rather the whole EQ reserve = 1.25*(EPR + ERC). The deduction to capital available is only the EPR
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