An actuarial valuation method explained in simple terms
A well known concept in life insurance reserving is the net level premium reserve. Jeremy Levitt, CEO of the Graeme Group, and I teamed up to create the attached summary that describes the formulas actuaries use to calculate net level premium reserves. The net level premium method is a conservative approach used to calculate valuation reserves and is a staple of the life actuarial profession. In short, the net level premium reserve equals the present value of future benefits less the present value of future valuation premiums. You can find a PDF version of the attached summary on my website, here: https://lnkd.in/eM_SmqyR Did you know that Graeme Group (GG) is a powerful international network of top performing actuarial contractors? GG represents experts in the fields of life insurance, P&C, and healthcare. Its professionals are experts in crucial software programs such as Prophet, ResQ, Arius, ALFA, AXIS, R, SQL, Python, and others. Grame Group is exclusively focused on actuarial needs, is owned and run by actuaries, and has powerful partners many of whom are the largest employers of actuaries in the world. I encourage you to check them out here: https://lnkd.in/e6cUyHJa