Financial Pricing Models for Property-Casualty Insurance Products: Modeling the Equity Flows

This paper and its companion papers present the use of return on capital financial models to price property-casualty insurance products. This paper focuses on the cash flow and equity flow modeling that underlies the financial models. The companion papers complete the description of return on capital pricing models. The first two appendices to this paper - Appendix A on federal income taxes and Appendix B showing the workers' compensation pricing exhibits - apply to all the papers in this series.