A Hitchhiker’s Guide to Analysis of Surplus

This article takes a look at the basics of the Analysis of Surplus (AoS) by drawing inspiration from some of the greatest minds in science. The writer has trained a number of Life Insurers in the proper use and set-up of an AoS. He has realised, over time, that once the connection between the AoS and the Income Statement is established in the mind of the actuarial trainee, everything else regarding the AoS falls into place.

This article attempts to establish that connection and provides a general appreciation for the AoS.


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