At the transition date, Ondine SA applies the fair value approach to a group. The fair value of the group is 4,500 (case data). Future flows are claims of 4,840 payable in two years and premiums of 1,100 receivable in one year; the discount rate is 10 % and the risk adjustment for non-financial risk is 200 (case data, management's judgement). Calculate the fulfilment cash flows of the group and the margin at the transition date.
- Claims to be paid in two years
- 4,840
- Premiums to be received in one year
- 1,100
- Discount rate (case data)
- 10 %
- Risk adjustment for non-financial risk (case data)
- 200
- Fair value of the group (case data)
- 4,500