Pensions & Life Assurance UL Pricing & Accounting


Unit linked Pricing within Life and Pensions Companies is a complex and little understood art. The extensive range of assets involved in these funds together with the cross holdings make the pricing of these tiers of funds as involved as the pricing of Unit Trusts or OEICs. The additional complexity of actuarial calculations makes the pricing a specialist area.


This course aims to provide a complete back ground in the unit pricing of Life Assurance  and Pension funds and is a good course for the beginner. The course includes the implications of year end evaluations and the production of accounts. The taxation implications of receiving income in both pension and life funds is covered together with the issue of charging of policy fees and related taxation charges. The course will not cover the technical tax charging but will cover tax provisioning at assumed tax rates.


The course will also look at the implications of direct vs indirect investment and the impact of IAS 32 & 39 on life and pension funds. Derivative accounting is not covered and the funds are assumed not be hedge funds.



           Accounting staff of Life and Pension companies

           Taxation staff

           Risk and Compliance Staff

           Actuarial students and actuaries involved in regulatory returns

           Legal staff involve in actuarial and other matters

           Audit staff

           IT and systems development staff


Delegates require a basic knowledge of accounts systems and at least 3 months experience in a Life or Pension fund environment



           Structure of funds and pricing issues

           Unit linked, Non linked and with profit funds

           Underlying assets of each type of business

           Actuaries accountants and fund pricing roles of each and interaction

           Units in funds compared to unit trusts

           Cross holdings

           Life and Pensions

           Bid offer and mid price


           Liquidating units to meet charges and costs

           The overall company position

           DTI return

           The prime pricing mechanism asset type equities

           Purchases and sales                                                      

           Bonus issues

           Rights issues, Rights issues nil paid, stamp duties and costs, share buy-backs

           Price feeds and valuations, Extel etc concepts of risk in pricing

           Derivatives types and accounting-futures

           CGT reserving realisation basis

           Income received tax credit system, accrual

           Asset types UK unit trusts

           Purchases and sales


           Managers rebates stamp duty reserve tax issues

           CGT calculations deemed disposals seven year spreading rule

           Income receipts dividend streaming, recovery on unfranked element, accrual

           Asset types Overseas assets

           Purchase and sales

           Currency gains and losses

           CGT reserving basis

           Overseas income foreign taxes & withholding tax recoveries

           Asset types Gilts Bonds and interest bearing equities

           Purchases and sales

           Accruals basis and mark to market pricing (a particular look at non-link funds)

           Tax basis realised gains reserve

           Income tax and recoverability for pension funds

           Gross gilt regime

           Asset types properties

           Purchase and sales brief discussion of VAT issues, enhancement expenditure

           Income and expenses

           Portfolio examples

           Bringing it all together worked example of a mixed fund

           Pricing controls

           Causes of error

           Correction and rectification

           Reasonable expectations of policyholders and the actuarial requirements

Todays Date:

Duration 2 days
Available as an in-house course. Details on request.

Investment Education PLC
45 Old Hall Road, Manchester M7 4JF, United Kingdom
Tel:+44 (0)161 832 3800
Registered in England Number 2129160
VAT Registered Number GB 480 2112 85

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