d. An explanation of how the results of sensitivity tests and varying assumptions were used or considered in developing assumptions including a description of, results of, and action taken with respect to sensitivity tests performed. e. A description of material not fully reflected in the cash-flow model used to calculate the stochastic reserve, including: i. A description of each element of the cash-flow for which this provision has been made in the stochastic reserve (e.g., risk factors, policy benefits, asset classes, investment strategies, risk mitigation strategies, etc.). ii. A description of the approach used by the company to provide for these risks in the stochastic reserve outside the cash-flow model, a summary of the rationale for selecting this approach and the key assumptions justifying the underlying approach. iii. If there is more than one model element included in this provision, clarifying whether a separate provision was determined for each element, or collectively for groups of two or more elements and explaining the methodology, supporting rationale and key assumptions for how separate provisions were combined. f. Summary of the impact of aggregation on the stochastic reserve. g. If the company uses a date that precedes the valuation date to calculate the reserves, the company shall explain why the use of such date will not produce a material change in the results if the results were based on the valuation date. Such explanation shall describe the process the qualified actuary used to determine the adjustment, the amount of the adjustment and the rationale for why the adjustments are appropriate. h. Description of any approximations and simplifications used in reserve calculations. Certifications a. A certification from a duly authorized investment officer that the modeled asset investment strategy is consistent with the company’s current investment strategy and an actuarial certification by a qualified actuary, not necessarily the same qualified actuary that has been assigned responsibility for the PBR Report or this sub-report, regarding the modeling of clearly defined hedging strategies. b. A certification from senior management certifying that the principle-based valuation complies with VM-G (Corporate Governance Guidance for Reserves). c. Certification, by the qualified actuary assigned responsibility under VM-G for a group of policies that qualifies for exclusion from the requirement to calculate a
d. An explanation of how the results of sensitivity tests and varying assumptions were used or considered in developing assumptions including a description of, results of, and action taken with respect to sensitivity tests performed. e. A description of material not fully reflected in the cash-flow model used to calculate the stochastic reserve, including: i. A description of each element of the cash-flow for which this provision has been made in the stochastic reserve (e.g., risk factors, policy benefits, asset classes, investment strategies, risk mitigation strategies, etc.). ii. A description of the approach used by the company to provide for these risks in the stochastic reserve outside the cash-flow model, a summary of the rationale for selecting this approach and the key assumptions justifying the underlying approach. iii. If there is more than one model element included in this provision, clarifying whether a separate provision was determined for each element, or collectively for groups of two or more elements and explaining the methodology, supporting rationale and key assumptions for how separate provisions were combined. f. Summary of the impact of aggregation on the stochastic reserve. g. If the company uses a date that precedes the valuation date to calculate the reserves, the company shall explain why the use of such date will not produce a material change in the results if the results were based on the valuation date. Such explanation shall describe the process the qualified actuary used to determine the adjustment, the amount of the adjustment and the rationale for why the adjustments are appropriate. h. Description of any approximations and simplifications used in reserve calculations. Certifications a. A certification from a duly authorized investment officer that the modeled asset investment strategy is consistent with the company’s current investment strategy and an actuarial certification by a qualified actuary, not necessarily the same qualified actuary that has been assigned responsibility for the PBR Report or this sub-report, regarding the modeling of clearly defined hedging strategies. b. A certification from senior management certifying that the principle-based valuation complies with VM-G (Corporate Governance Guidance for Reserves). c. Certification, by the qualified actuary assigned responsibility under VM-G for a group of policies that qualifies for exclusion from the requirement to calculate a
cmte_a_latf_exposure_vm-31_%20all_changes.docx