reserving

Discussion in 'South Africa' started by Bidza, Feb 3, 2012.

  1. Bidza

    Bidza Member

    Hi guys.What is the danger in holding a negative reserve?
     
  2. Calum

    Calum Member

    Basically, if you have to release a reserve while it is negative, it is a direct hit to your P&L - usually, if a policyholder lapsed, for example.
     

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