The values shown in the following table were extracted from policy year 1 of the pricing example that runs from Chapter 4 through Chapter 11.

If you attempt to match some of the values shown below from the pricing example in Chapters 4 through 11, remember to include the reinsurance values in Chapter 7.

Fill in the missing values and compute free cash flow. Compare free cash flow to the first policy year’s distributable earnings, taken from the pricing example in Chapter 11. Assume that positive cumulative cash flows earn interest at a rate of 7% and debt (negative cumulative cash flows) is charged interest at a rate of 7%.
Beg Mid End LiabCashFlow —6.62500 —1.00120 3.43830 AssetCashFlow 0.00000 0.00000 0.00000 IntReceived IntPaid Cash Flow CumCashFlow InvIncome Incr. in AssetReq 2.19940 Free Cash Flow