NAIC IRIS Ratios

dperry@UNIGARD.COM
Mon, 9 Mar 1998 17:15:09 -0800

On this exam, we have two different source readings which discuss the NAIC=20
IRIS Ratios. One of them is the D'Arcy article, and the other is the Troxel=
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and Bouchie article. There are some discrepancies with regard to the "usual=
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ranges" of these ratios. For example,

(3) Surplus Aid to Surplus:
D'Arcy: <25%
Troxel: <15%

(5) Investment Yield:
D'Arcy: >5%
Troxel: between 4.5% and 10%

(9) One Year Reserve Development to Surplus:
D'Arcy: <25%
Troxel: <20%

(10) Two Year Reserve Development to Surplus:
D'Arcy: <25%
Troxel: <20%

According to the Syllabus, D'Arcy was published 1996, and Troxel was=20
published in 1995, so I would be inclined to believe the former rather than=
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the latter. However, the D'Arcy paper was part of the Foundations book,=20
which was re-released in 1996, and it is possible that the IRIS values were=
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not updated for the new release. Do any of you know for sure?