bluuebunny/crossref_metadata_2025_split huggingface dataset:
The treatment of income tax and expenses in the analysis of surplus
Authors: Dyson E. J. W. 
Published: August 2016

These notes are intended to elucidate the treatment of income tax and expenses in the analysis of surplus of a commission-paying office transacting ordinary life assurance and annuity business in the United Kingdom only. The Office is assumed to make an annual valuation for internal purposes, but not necessarily to distribute surplus yearly.It may first be remarked that the analysis of surplus forms both a check on the accuracy of the valuation and a guide to the amounts and relative importance of the various sources of profit and loss. We are here not concerned directly with the first of these functions and only with two items of the second. It must be realized, however, that the analysis is related to the valuation bases, which may depart materially from the bases underlying the office premiums, particularly at a time when conditions are changing rapidly, or if there is a substantial proportion of very old business on the books.
The analysis of surplus disclosed by a bonus reserve valuation
Authors: Rose D. S. 
Published: August 2016

1. The analysis of the surplus of a life office disclosed by a bonus reserve valuation does not differ in principle from the analysis of the results of a valuation on a net premium basis, but the treatment of bonus requires special consideration. A method of analysis appropriate to a uniform compound reversionary bonus is discussed in the following paragraphs, and a numerical example is given by way of illustration.2. It is assumed that the valuation formula iswhere (S + B) represents the sum assured and existing bonuses,P is the office premium,k is the proportion of premium reserved for expenses,x is the present age nearest birthday,n is the curtate duration to maturity,b is the rate of bonus for which a specific reserve is made.
The method for the expression of multiple-life contingencies in terms of last survivor statuses.
Authors: Damle S. C. 
Published: August 2016

The student is familiar with the Z formulae for the expression of certain multiple-life contingencies in terms of symmetrical combinations of the component joint-life statuses. The present note develops an analogous method based upon last survivor statuses. In certain circumstances this latter type of expression may be the more convenient for practical use.
Consider a set of m lives. Then in the notation followed by E. F. Spurgeon, in his book, Life Contingencies, Zr
represents the sum of the probabilities of r lives surviving a given period for all combinations of r lives that can be made out of the set of m lives. The number of combinations of r lives that can be formed out of the set of m lives is .
Time series
Authors: Johnson N. L. 
Published: August 2016

The object of this note is to provide an introduction to methods used in time-series analysis, together with a general appraisal of their usefulness. The treatment is purely expository and, of necessity, rather condensed. Nothing more than a broad survey of the subject is attempted; those interested in the technical details of theory and application should consult the references given at the end.The termtime seriesis applied to any series of observed values of some character when theorderof the items in the series, as well as their actual magnitudes, is of importance. Examples of such series are common in statistical practice, and the following may be cited in illustration: economic series such as weekly, monthly or annual production figures, prices or index numbers; series of results of routine inspection and testing of successive batches of manufactured product; continuous blood-pressure records; results of psychological fatigue tests expressed as the rate of working on some standard task in successive 5 sec. intervals. In all these examples the factor which determines the order of the observations istime. The study of ordered series of observations is entitled ‘Time Series’ because in a large proportion of applications time is the ordering factor. Nevertheless, it is not necessary that the series be ordered according to time.
The distribution of the sum of n rectangular variates. I
Authors: Packer L. R. 
Published: August 2016

The purpose of this note is to establish, by finite difference methods, some of the properties of two probability distributions: (1) the distribution of the sum ofnindependent variates, for each of which every value in the interval (0, 1) is equally probable; and (2) the distribution of the sum ofnindependent variates, each of which must take one offequally probable values, 0, 1, 2, …,f–1. For brevity we shall refer to these distributions as (1) the continuous case and (2) the discrete case. The continuous case is important because it gives a solution to a problem that often arises in practical computing: ‘Ifnnumbers, which are all “rounded-off’ at the same [decimal] place, are added together, what is the chance that the total will be the correct (rounded-off) total, or will be 1, 2, etc., different in the last place from this correct (rounded-off) total?’ (Forster, 1947).Laplace (1776) gave a proof of the continuous case; and later (1812) gave a proof of the discrete case, from which, by a limiting process, he derived the result for the continuous case. The result for the discrete case had, however, been published much earlier by de Moivre (1711), and proofs had been published by de Montmort (1713) and de Moivre (1730). Laplace's proofs are long and difficult to follow; but, as far as I can discover, no later alternative proofs were put forward until Rietz (1924) gave a much simpler proof of the continuous case. Irwin (1927) used characteristic functions to prove the continuous case; and Hall (1927) gave a remarkable geometrical proof of the continuous case and derived a general expression for its moments.
The Division of A Trust Fund Between Life Tenant and Reversioner and the Incidence Of Estate Duty
Authors: Hayes L. T. 
Published: August 2016

Heavy taxation by Estate Duty and Income Tax has recently led to a serious consideration of the avoidance of this onerous liability by means of gifts made by a donor in his lifetime and, in the case of a settled fund, of an exchange of benefits where the Beneficiaries can come together and bring the trusts to an end.If, in the case of a Settlement, Life Tenant and Reversioner can by mutual agreement arrange to divide the Fund between them, the Life Tenant may benefit considerably by realizing a sum in excess of the market value of his interest and using it to provide as much or more spendable money than before. He may also promote a smaller liability to Sur-Tax. The Reversioner may succeed in securing a cash sum larger than he could expect at a future date on the death of the Life Tenant reduced as it would be by Estate Duty at the aggregable rate applicable to the Life Tenant.
The Wider Field
Authors: Spratling F. H. 
Published: August 2016

‘Extending the scope of the profession’ is such a well-worn cliché that one could define the wider field effectively, if ungrammatically, as the place professional scope extends or can extend into.F. A. A. Menzler raised the matter to the level of public importance at the Annual General Meeting of the Institute in 1924, exercising the Fellow's democratic right of intervention. At the invitation of the Council, he developed his ideas in a paper submitted to a Special General Meeting of members on 26 October 1925. He drew attention to the growing importance and recognition of statistics as a tool of government and of management. He claimed that the actuary was ipso facto a trained statistician, and that actuaries might reasonably expect to fill the increasing number of statistical posts then becoming available. Menzler also showed that the membership of the Institute had grown substantially in numbers during the preceding twenty years.
The Practice of Industrial Assurance
Authors: Allaway G. W. E. 
Published: August 2016

The aim of this paper is to illustrate the background of Industrial Assurance. The paper therefore contains as little technical detail as possible. Industrial Assurance is fundamentally similar to Ordinary Assurance, but the organization and administration of Industrial business varies from that of Ordinary business partly as a result of special legislation applicable to Industrial Assurance and partly as a result of the frequent collection of premiums at the home of the policyholder.The technical and legal side of the business has been dealt with in various papers given before the Institute and the Students' Society. Little has been written of a descriptive character, and it is thought that an appreciation of the nature and day-to-day conduct of the business might help the student to get the technical side more easily into perspective. A problem in Industrial Assurance cannot be tackled from the point of view of Ordinary Assurance.
The Actuary in Canada
Authors: Suttie T. R. 
Published: August 2016

I Shall not try in this paper to give a complete picture of the actuary in Canada, nor of the Canadian life insurance business. I have neither the space nor qualifications to attempt such a task.I shall, however, try to bring out the differences in these fields which would be most noticeable to a United Kingdom trained actuary coming to live and work in Canada. I have, I think, advantages in attempting to do this. I have not been in Canada for so long that I have forgotten the contrasts which struck me most forcibly, but on the other hand, after almost six years, I can hope to be a reasonably accurate guide and in some cases at least suggest an explanation for the differences.
Some Legal Points Affecting Investments
Authors: Swift T. F. 
Published: August 2016

Members of this Society and of the parent Institute have considered, from time to time, questions affecting the investment of life insurance funds. In the early days ‘Bailey's Canons’ were propounded, and comparatively recently J. B. H. Pegler's ‘Actuarial Principles of Investment’ and H. G. Clarke's ‘Broad Analysis of the Problem’ have been discussed. Also, the more practical aspects of the subject have received due consideration: notably Stock Exchange Investments by A. S. Holness, Loans and Mortgages by W. Murray Simpson and Real Property by G. B. Lane, F.S.I., and W. A. Leach, F.S.I., in 1944, and further by A. C. Wheeler and K. A. C. Wheeler in 1953.My purpose is to present certain legal points affecting these investments. I hope my remarks may to some extent be supplementary to these previous contributions on the subject of investments, and I shall try to avoid covering the same ground.
Bias of the Census Method.
Authors: Stevens W. L. 
Published: August 2016

Two conditions have been proposed (Anderson &amp; Dow, 1948) for the census method of constructing a mortality table to be ‘strictly correct’: (1) that at the beginning and end of the investigation, ages of lives are evenly spread over the year of age x to x + 1, or (2) that numbers and distributions of ages are the same at beginning and end.
In effect, these alternative conditions are proposed to insure that the approximate formula for the total period of exposure to risk, derived from annual census,

shall be reasonably correct. It is, however, of interest to examine the method more closely, under the hypothesis that the total period of exposure to risk can be determined with negligible error, as would theoretically be possible by holding censuses with sufficient frequency.
Population Data of the Classical World
Authors: Green P. J. H. 
Published: August 2016

Current interest in world population and resources has resulted in the publication of several books in which the increase in world population over the last two thousand years has been traced or at least referred to. It may therefore be of interest to summarize some of the population statistics available for Greek and Roman times and the methods which have been used to obtain estimates of totals from them.It is known that in many of the provinces of the Roman Empire a census was taken every 14 years which compares favourably in accuracy and completeness with those of modern times. Individual census returns have survived which show that in Egypt in the first two centuries A.D. the whole population was enumerated by households and by age, sex and occupation, but the only record of totals which have been preserved is a statement in Josephus's Jewish Wars to the effect that the population of Egypt excluding Alexandria was, according to the census returns, 7,500,000.
Some aspects of Policy Reserves and Premiums under the New Mortality Tables
Authors: Thomas E. M. 
Published: August 2016

In the course of the discussion at the meeting at Staple Inn last October one speaker regretted the absence of any reserve figures from the notes then under discussion. This comparison of reserves under a new table with those under a table to which we have become accustomed is something of a habit which we tend to do perhaps without asking ourselves why we do it. What does a comparison between A1924–29 and A1949–52 reserve values tell us? Does it really tell us what change to expect in our liability as a result of a change of valuation basis or are these figures merely calculated as a matter of interest, serving in practice no useful purpose?The answer to that must depend, at least as far as reserves under the main classes are concerned, on the extent to which we use a true net premium valuation. Interesting information is to be found in the paper recently given to the Faculty by J. M. Beattie.
Economic Policy
Authors: Cottrell H. C. 
Published: August 2016

This paper sets out those considerations which appear to the author to be of major importance in the formulation of economic policy and some of the history of the development of thought on these matters. It should be emphasized at once that it represents the knowledge acquired by an actuary, with no formal training in economics, in the course of attempting to appraise the policies actually adopted in recent years, and that it is addressed primarily to those setting out with the same equipment on the same path.The only other introductory remark necessary is that, inter alia, considerations of space prevent any lengthy discussion of non-economic factors which influence economic policy. This does not imply that technological, moral or social problems may be ignored, but that, for this purpose, they are regarded as parameters in the economic equation.
Valuation of Pension Fund Assets
Authors: Gilley D. F. , Funnell D. 
Published: August 2016

It has been remarked on many occasions that whilst there is a plethora of material which has been contributed to the Institute and the Students' Society on the actuarial valuation of liabilities, the subject of valuation of assets seems to have been consistently overlooked by all save one or two authors. We believe that a compelling reason for this apparent indifference to the subject may be found in the trend of interest rates within the experience of the actuaries who introduced the valuation techniques which a student may now tend to take for granted.Consider Table 1, compiled from information given in a paper by C. M. Douglas, F.F.A., on ‘The Statistical Groundwork of Investment Policy’. During the period 1833–1912 the average annual rate neither exceeded £3. 11s. od.% nor fell below £2. 9sod.%, and in general the yield drifted slowly downwards.
The Budget and the National Economy
Authors: Weaver D. 
Published: August 2016

In working his way through the Institute syllabus the student deals in Section C with subjects rather baldly described as ‘Sources of National Income and Expenditure’, ‘Introduction to Government Finance’, and at a later stage, with the money market and banking and financial institutions. What disciplines these impose on the student I have only a vague idea for I am now a ‘vintage’ actuary in the sense that this is used as being synonymous with ‘old crock’. However, I see from theYear Bookthat ‘members of the profession are recognized as especially competent to advise on financial problems’ and I take it that the purpose of this meeting is to help newly qualified actuaries towards the attainment of this special competence.My subject tonight is the budget, and although it is given to few actuaries to advise on the making of the budget we must all know how to discuss it intelligently, for clearly our judgment of the national economy underlies our reading of nearly all other financial problems.
The Administration of a Private Pension Fund
Authors: Haigh J. R. 
Published: August 2016

This paper attempts to set out some of the points of detail in the administration of a privately administered pension fund based on the practical experience of a large fund. The solutions offered to the problems arising have necessarily been reached in the context of a particular fund and do not claim to be the only, or even the best, answers for other funds; indeed the very problems may be different in other funds, particularly in smaller ones.It seems essential, therefore, to describe the main features of the fund in question.
An Address Given to the Faculty of Actuaries Students' Society on 10 October 1960
Authors: Ross A. F. 
Published: August 2016

When your invitation came I thought what better subject is there to discuss than the problems facing our own institutions and in particular the problems that are likely to be left to your generation to solve or to suffer under. I therefore intend to deal in this address with one or two of the more controversial issues of the present time—issues which I feel will leave their mark on our business and our profession.At the end of the 1914–18 War, Life Offices pondered and considered how they could regain their strength. Not only had war claims been heavy but they had suffered severe depreciation on their investments, due to the increase in the market rate of interest. The solution that the great majority found to this problem of regaining strength was to pass their bonus.
The Impact of National Insurance Act, 1959, on Private Pension Schemes
Authors: Beech T. Hugh 
Published: August 2016

Can the National Pension Scheme as a whole now be expected to maintain solvency? On what lines may the Scheme be expected to develop in the future? Should contracting out not have been permitted?The temptation to go into these and other fascinating questions will be resisted as far as possible; it is proposed instead to confine the subject matter of this paper reasonably closely within the area implied in the title. In order to establish the context in which the present situation has arisen, it is appropriate, however, to begin with a very brief survey of the more recent history of national and private pensions in Britain before the passing of the National Insurance Act 1959, which will be referred to henceforward simply as ‘the Act’; the situation before the Act comes into operation will similarly be referred to as ‘pre-Act’. When the Act comes into operation two new situations will arise; ‘Contracted-in’ and ‘Contracted-out’. There are thus three conditions to consider, and as far as possible when using expressions in connexion with contracting out such as saving, extra cost, etc., it will be stated whether these are by comparison with the contracted-in or pre-Act position, lack of clarity on this point having been a source of confusion in some of the literature on the subject.
The Extra Premium for a Premium Rebate Benefit in Recurrent Single Premium Group Life Assurance.
Authors: Madders P. M. 
Published: August 2016

1. Consider the question: Given the group life assurance premium for death benefits, what extra should be charged for a premium rebate on the basis that the cost of the rebate must be covered by the extra? Assume no additional administrative costs are involved.2. Let the rebate be a proportion s of the excess of a fraction a of the total office premiumP′ over the total claimCin a year. The rebate is thens(αP′–C). Usually the benefit is more complicated, but as explained in §8, the extra premium for the more complex benefit is related in a simple manner to the extras for the benefit described. In order to avoid scale constants the average sum assured per life is taken as unity.
An Introduction to Boolean Algebra
Authors: Squires R. J. 
Published: August 2016

At the Annual General Meeting of the Students' Society in 1961, a motion was passed that articles of a less serious nature than those normally published in the past be accepted by the Editors ofJ.S.S.It is in the spirit of this motion that this article is offered. It does not pretend to advance actuarial science in any way, and its only purpose is to introduce members of the profession to a technique which is interesting in that it is different from our normal techniques and to show that it has possibilities in the actuarial field by demonstrating its applications in other fields.This is not the first time that the subject has been written about in an actuarial journal. Edmund C. Berkeley (1937) wrote a paper for the American Institute of Actuaries going into the subject in some detail, and it is from this paper that I have taken my examples of applications to life office practice.
The Calculation of Premium Rates for Decreasing Temporary Assurances
Authors: Thomas E. M. 
Published: August 2016

In their text book,The Practice of Life Assurance, published in 1952, Coe and Ogborn devoted less than four pages to the methods of calculating premiums for varying temporary assurances, including family income policies. At that time decreasing temporary assurances were relatively uncommon except for a block of single-premium policies transacted mainly by a small number of offices which specialized in them.Since that date, however, the transaction of this type of policy on an annual-premium basis has assumed very substantial proportions, particularly in connexion with mortgages, and the cover provided varies considerably among different offices. Some are prepared to go to considerable lengths to provide exact cover, whereas others appear reluctant to go into any great refinements. This is understandable as the calculation of premium rates is quite a formidable task whichever of the known methods is used. The not infrequent changes in building societies' interest rates add considerably to the difficulties.
IV Simulation
Authors: Benjamin S. 
Published: August 2016

Simulation is the technique of examining a problem by playing it through like a game. Usually the problem involves probabilities and these are modelled in the game by a random element introduced by throwing a die, picking numbered counters from a bag or generating random numbers on a computer. Usually the probabilities of interest are estimated by playing through the game a large number of times. It is the speed of the modern computer which has turned the technique from an interesting toy into a powerful tool.As an example suppose we have a problem involving a payment if a life agedxdies before agex+1 and we are givenqx= ·024, say. If we have a bag with counters numbered 1, 2,… 1,000 and pick one at random then the probability that the number drawn is less than or equal to 24 is just ·024. Hence it will be convenient to invent the ‘rule’ that at that point in the game if the number drawn is less than or equal to 24 thenxdies and the payment is made, otherwise he lives and no payment is made.