4) Given the following information, calculate the 2010 accident year trended ultimate loss & ALAE to be used in a rate change analysis. All policies are annual and written on January 1 .The rate change effective date is January 1, 2013 The rate level is reviewed annually Underwriting guidelines were revised on January 1,2011, substantially changing the composition of the book of business We have the following information . Accident Year 2010 2011 2012 Reported Loss & ALAE as of June 30, 2012 (S 9,000,000 5,000,000 500,000 Use two-step trending with the following information: Reported Loss & ALAE Calendar Year ending Sep 2009 Dec 2009 Mar 2010 Jun 2010 Sep 2010 Dec 2010 Mar 2011 Jun 2011 Sep 2011 Dec 2011 Mar 2012 un 2012 Frequency 0.058 0.059 0.062 0.063 0.063 0.065 0.078 0.078 0.079 0.082 0.081 0.082 Severity 20,355 20,125 20,500 21,575 21,388 19,903 19,567 19,238 19,538 20,063 20,050 19,950 (S) Pure Premium (S) 1,187 1,271 1,359 1,347 1,294 1,526 1,501 1,543 1,645 1,624 1,636 requenc Severit 1-step ste 16.0% 4.1% 25% Use the following information to develop the trended losses to ultimate (note that the AY 2012 losses are given as of June 30, 2012) Selected Re 12 ed Loss & ALAE Age-to-Ultimate Factors 18 30 1.121.08 1.05 1.02 1.01 1.00 36 42 48 5460 Month Factor 6.50 2.001.55 120 24 4) Given the following information, calculate the 2010 accident year trended ultimate loss & ALAE to be used in a rate change analysis. All policies are annual and written on January 1 .The rate change effective date is January 1, 2013 The rate level is reviewed annually Underwriting guidelines were revised on January 1,2011, substantially changing the composition of the book of business We have the following information . Accident Year 2010 2011 2012 Reported Loss & ALAE as of June 30, 2012 (S 9,000,000 5,000,000 500,000 Use two-step trending with the following information: Reported Loss & ALAE Calendar Year ending Sep 2009 Dec 2009 Mar 2010 Jun 2010 Sep 2010 Dec 2010 Mar 2011 Jun 2011 Sep 2011 Dec 2011 Mar 2012 un 2012 Frequency 0.058 0.059 0.062 0.063 0.063 0.065 0.078 0.078 0.079 0.082 0.081 0.082 Severity 20,355 20,125 20,500 21,575 21,388 19,903 19,567 19,238 19,538 20,063 20,050 19,950 (S) Pure Premium (S) 1,187 1,271 1,359 1,347 1,294 1,526 1,501 1,543 1,645 1,624 1,636 requenc Severit 1-step ste 16.0% 4.1% 25% Use the following information to develop the trended losses to ultimate (note that the AY 2012 losses are given as of June 30, 2012) Selected Re 12 ed Loss & ALAE Age-to-Ultimate Factors 18 30 1.121.08 1.05 1.02 1.01 1.00 36 42 48 5460 Month Factor 6.50 2.001.55 120 24