Usualassets is ooncemed about the longevity risk it faces in relation to Statutory Fund U and is considering offering a one-time withdrawal offer to policyholders at 30 June 2021. Under this offer, policyholders would receive the following lump sum payment if they choose to withdraw at 30 June 2D21: Flegular payment amount paid at the beginning of the year ending 30 June 221 x [1 [1+i]'5'] li where y = 30 - 0.?5 at {Age - 55} for males; and y = 4d [Age 55} for females For example, a YD year old male who received a regular payment amount of $100,000 at the beginning of the year ending 30 June 2021 would receive a lump sum payment of $1,418,230 it i = 3%. Where the lump sum payment is less than the Policy Balance, the lump sum is set equal to the Policy Balance and no payment from Statutory Fund U is required. Where the lump sum payment is greater than the Policy Balance. the difference between the lump sum payment and the Policy Balance is paid from Statutory Fund U. This offer is expected to have a one-off impact on the baseline withdrawal rate at 3B June 2021, with the withdrawal rate for all policyholders at 30 June 2D21 expected to be as follows: Withdrawal rate = 0.1 x {0.05 - i] x me + BEIGE x {95 - Age} For example, the baseline withdrawal probability for a FD year old when i= 3% would be equal to 0.225. The actual withdrawal rate for this policyholder will depend on other factors such as policy balance, regular payment amount, initial purchase value and length of time the policy has been held. Furthermore. it is expected that the mortality rates for policyholst remaining after 30 June 2021 will decrease, with the underlying age-based mortality rate for all policyholders remaining after this date being reduced by Ellis\": x [0.05 - i} x 100 l {Bomplete years since 30 June 2021 +1]. For example, in the year ending 30 June 2022, and for i = 3%, an 85' year male has a death probability of 0.04?554 x {i 20% x 2 I f} = 0.023592. in the year ending 30 June 2024, and for i = 3%. an 30 year male has a death probability of 0.046923 1: ft - 20% x 2 I 3) = 0.040631