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The sums are carried out in Excel, the basic operations being generating cashflows, namely initial single premium, investment returns and contractual payments.

Contracts They are pure endowments (10,000 after 15 years) and annuities (1,000 per annum for 15 years at end of year), with all payments certain.

Inflation Protection Payments can be either fixed or fully inflation-proofed (RPI).

Pricing Approach This can be either market-related (“MtM”) or off-market (“Off”).

Assets Portfolios There are 6 different investment options.

Random Experiences There are two, “2014” and “2018a”; this will be extended.

Random Scenarios The model is run 10,000 times using random numbers which differ over time for each variable. There are also results for 2,000 random numbers (just the first 2,000 of the 10,000).

Expected Returns Two different multiples are considered for equities and for conventional bonds; this approach is not applied to index-linked bonds.

Surpluses And Deficits No correction payments are made during the 15 years.

Single Premium This is determined by the initial pricing approach.

Results Means, standard deviations, highest 5% and lowest 5% are shown.

Publication The results are shown as interactive Flash charts.