Abstract
A number of methods of allocating capital to business unit, e.g., line of business, profit center, etc., are discussed. Goals of capital allocation include testing the profitability of business units and determining which units could best be grown to add value to the firm. Methods of approaching these questions without allocating capital are included in the discussion.
Volume
Summer
Page
279-305
Year
2003
Categories
Actuarial Applications and Methodologies
Capital Management
Capital Allocation
Financial and Statistical Methods
Risk Pricing and Risk Evaluation Models
Capital Theory
Financial and Statistical Methods
Risk Pricing and Risk Evaluation Models
ROE
Financial and Statistical Methods
Risk Measures
Tail-Value-at-Risk (TVAR);
Financial and Statistical Methods
Risk Measures
Value-at-Risk (VAR);
Actuarial Applications and Methodologies
Dynamic Risk Modeling
Publications
Casualty Actuarial Society E-Forum
