How cautiously was the initial premium set? Again, consider a linked endowment, backed by conventional gilts over the blend experience. This time, the ratios were calculated for each scenario.

On average, for MtM {Off}, we guessed that we would need to start with 11,237 {9,834} but we really needed 7,601. Compared to the accurate figure, our guesses were 48% {29%} too high. More figures are in the chart.