Economic Capital Meets the Real World

Stein, Robert
April 2009
Best's Review;Apr2009, Vol. 109 Issue 12, p73
Trade Publication
The article discusses economic capital methods that aim to help in managing risk and capital levels. The measures are based on estimates of fair value of assets, liabilities and volatility. Survival and viability is when insurers plan for viability and targets regulatory or rating agency capital levels. It mentions that most economic capital methods and Generally Accepted Accounting Principles are done on a consolidated basis.


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