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Profit Adjusted Premiums - PI Transfers Risks to Insurer B or NHI

's new probability, (0.765076), of a PLRE less than 0.765076 (PLR + 1 * 0.015076) is 0.8413, 's probability of profits of at least 5%. can exceed 's probability of earning 5% profits on its portfolio, if pays 81.51% (100% * (0.765076 + 0.05000)) of its Earned Premiums. 's profits are guaranteed at 3.49%. (0.752844), 's probability of a PLRE less than 0.752844 (PLR + 1 *
), is 0.8413, so can exceed 's probability of earning 5% profits on its portfolio, if pays 80.28% (0.752844 + 0.05000) of its Earned Premiums. 's profits are guaranteed at 4.72%.

Thomas Cox PhD RN
2013-02-23