Investment Education PLC

Pensions & Life Assurance UL Pricing & Accounting
Last Updated - 23 December 2008
Todays Date -
Return to CoursePrint course
Duration 2 days
Available as an in-house course. Details on request.


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 Life Assurance Unit pricing of Life and Pension funds. 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 to be Hedge Funds.




Delegates require a basic knowledge of accounts and at least 6 months experience in a Life and Pension fund Pricing or Accounting environment



-Accounting for Equities: Fair value, Bid and Offer pricing (dual pricing mechanism)

-Accounting for Fixed Interest instruments and the implications of IAS32

-Conversions, Amalgamations, Income and Capital Accruals

-Period end transactions, investment objectives.

-Capital processes, Unit Trusts and OEICs (including other funds REITs,
Offshore Funds and Collectives)

-Dividend and Income receipts                              

-Dividend streaming


-Pricing analysis, cross holdings, managed funds, allocation of tax, rebates and recoveries

-Pricing including liquidation of units for management charges, pricing issues, policyholder unit allocations

-Actuarial concepts, risk and the life and pension funds

-A brief discussion of inclusion in regulatory returns and risk, allowable assets and valuation for actuarial purposes.