1. You are a senior actuary working for Beta, a life insurance company writing a range of protection and savings policies. A student actuary working on your team has presented you with the following data relating to a cohort of 50 identical 25-year conventional without-prots Endowment Assurance policies. all maturing in exactly ve years' time: Current age of policyholders: 55 exact Sum Assured: 100,000 per policy, payable at maturity. or at the end of the year of death. if earlier Mortality: 80% cf AMQE Ultimate Premium: 1,200 per annum received in advance at the beginning of each year, next premiums due in exactly one year's time Your Chief Actuary has asked you to calculate the best-estimate reserves that would be required to be held for this cohort. allowing for the investment return earned on the reserves held, For the purpose of this calculation, you will use an investment return that is unique to you. The rewrn you will use will be: 4tabod%, where able and d are the last four digits of your Examination Number. 501 for example, if your Examination Number is 123456. than you should use an investment return of 4.3456%; if your Examination Number is 98?654, then you should use an investment return of 4.?654%. For the purposes of calculating the best-estimate reserves you should: - Ignore the impact of expenses and charges - Assume that early surrenders are not permitted - Assume that any death benets arising in previous periods have been paid c) Calculate the best-estimate reserves Beta should hold at times t = 0,1,2,3,4, where t is measured in years, and t = 0 represents today's date. You should calculate the reserve required after any cash-flows due at that time have been paid/received. Note: you must show full workings for your calculations. d) Explain how the pattern of reserves calculated in part c) will impact on Beta's expected profit emergence at times t = 1,2,3,4,5, calculated on a best-estimate basis