Technical Note GMV Insurance

´Index
Sure of Individual Life 2
1.1. Discounts Female Insureds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.2. Seguro Temporal Individual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.2.1. Prima Unique ´Net (PNU) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.2.2. Annuity of a Temporary Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.2.3. Pagos Annual. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.3. Insurance Dotal Individual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
First Single Net (PNU) ´ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.3.2. Anualidad of a Endowment Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.3.3. Pagos Annual. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.4. Seguro Individual Lifetime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.4.1. Prima Neta Unica´ (PNU) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.4.2. Payments Annual. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

2. Status of Joint Life 5

2.1. Insurance Joint Life Expectancy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.1.1. Prima Unique ´Net (PNU) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.1.2. Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.2. Insurance Joint Life Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.2.1. First Unique Net´ (PNU) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2.2.2. Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2.3. Insurance Joint Life Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2.3.1. First Unique Net´ (PNU) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2.3.2. Payments Annual. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

3. Reservations 8
3.1. For an Individual Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
3.2. Status Common Life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
3.3. Reservation Pending Obligations to Fulfill (POF) . . . . . . . . . . . . . . . . . . . . . . . 8

4. Dividends 9

Page 1
Nota T´ecnica GMV Insurance

Individual Life Insurance

1.1. Discounts for Female Insured
A practice inherited from foreign insurance markets, particularly from the United States, is that of
to grant female insured individuals a discount on the premium, considering them, for the purposes of rating,
an age three years younger than her real age.
Mediante estudios demogr´aficos se ha determinado que, en la poblaci´on mexicana, la esperanza de vida
the birth of female inhabitants is approximately six years greater than that for the male population,
although we must take into account that this result refers to the general population and not to the population
insured.
It is convenient to mention that technically, the fact that the life expectancy at birth in Mexico is
greater in six years for women than for men does not necessarily indicate that the probability of death
of a male individual and age x0is equivalent to the probability of death of a person
de sexo femenino y edadx0+ 6, for any age0therefore, to grant a discount to contractors
del sexo femenino ser´ıa necesario contar con tablas de mortalidad

1.2. Individual Temporary Insurance

Term Life Insurance is the individual life insurance that provides protection to loved ones in the event of
economic imbalance and the loss of heritage as a consequence of the death or disability of the head of
family. The term for contracting the term life insurance ranges from 1 to 40 years

Acceptance age from 14 to 89 years.

SA up to 1,000,000 dollars

Hiring in pesos, dollars, or Investment Units (UDI)

1.2.1. Prima Neta ´

Unica (PNU)

n−1
A1x:n = X (S.A.)Vk+1qxk|
k=0

Where:
x: age of the person who purchases the insurance.
qx probability that a person of age x will die at age x + 1.
px : probabilidad de que una persona con edadxsobreviva a edadx+ 1.
n: number of years that the insurance will be in effect.
v k (1 + i)−(k+1)
i: interest rate agreed with the insured.
k| qxprobability that the insured at age x will die between the ages x+k and x+k+1.
k|qx = k px− k+1px
S.A.: Suma Asegurada

1.2.2. Annuity of a Temporary Insurance

To calculate the annual payments of a person with age during years depending on the insured amount
the following formula was taken:
n−1
ä
x:n = X Vk k p x
k=0

Donde:
x: age of the person purchasing the insurance.
pxprobability that a person aged x survives to age x + 1.
k px(px )·(px+1 )·...·(px+k )
n: number of years that the financing will be in effect.
v k(1 + i)−k
agreed interest rate with the insured.

Page 2
Technical Note GMV Insurance

1.2.3. Annual Payments

To calculate the amount of the payments that the insured will make depending on the financing they have requested.
will be used:
A1x:n
P=
ä
x:n

Where:
P: amount of each annual payment

1.3. Individual Life Insurance

The pure endowment insurance for 'n' years (Endowment Insurance) is the life insurance that provides the payment of a unit.
monetary only if the insured is alive at the end of "n" years after the contract is signed
policy. The term of the life insurance contract may vary between 2 and 30 years.

Acceptance age: 15 to 89 years

Up to 1,000,000 dollars
Contracting in pesos, dollars, or Investment Units (UDI)

1.3.1. Prima Neta ´

Unica (PNU)
To calculate the actuarial present value of a pure endowment insurance for 'n' years for a person at age (x) one should
use the following formula:
1
Ax:n= n Ex(S.A.)Vn n px
Where:
It is the age of the person in the year of hiring.
n: Representa la temporalidad anual que dura el seguro.
Vn= (1 +i)−nIt is the present value formula where its function is to bring values to the present.
i: Tasa de inter´es pactada con el seguro
n px It is the probability that a person aged (x) will survive n years.
n px=(px )(p x+1 )...(px+n−1 )
S.A.: Insured Sum.

1.3.2. Annuity of a Endowment Insurance

For the calculation of the annual payments of a person of age (x), a temporary annuity will be considered.
Years according to the insurance term and depending on the insured amount, the following formula was used:
n−1
ä
x:n = X Vk k p x
k=0

Where:
x: age of the person who is purchasing the insurance.
pxprobability that a person aged x will survive to age x + 1.
k px=(px )·(px+1 )·...·(px+k )
n: nu´mero de an˜os que estara´ vigente el financiamiento.
v k(1 + i)−k
i: interest rate agreed upon with the insured.

1.3.3. Annual Payments

To establish the payment that the insured must make in order to have the benefits in case of
The death must use the following formula:

n Ex
P=
ä
x:n

Where:

Page 3
Technical Note GMV Insurance

It is the net premium leveled which represents the amount of annual payment depending on the insured sum.
n ExIt is the Endowment Insurance
ä : Es la anualidad temporal.
x:n

1.4. Individual Life Insurance

El Seguro Vitalicio es aquel seguro de vida que te brinda una cobertura por siempre. Estar´as tranquilo de
protect your loved ones from any economic imbalance or loss in your absence.

Acceptance age: 15 to 89 years.

SA up to 1,000,000 dollars

Contracting in pesos, dollars, or Investment Units (UDI)

1.4.1. Prima Neta ´

Unica (PNU)
Para calcular lo que vale el riesgo de cubrirte a ti com persona de edad ”x”durante uoylos
tius tah”n.
t srenatrap
The following formula is used for life:
∞
Ax = X (S.A.)k+1Vk+1 qx k|
k=0

Where:
x: edad de la persona que contrata el seguro.
qxprobability that a person aged x dies at age x.
pxprobability that a person aged survives to age.
n: number of years that the insurance will be valid.
v k(1 +i)−k
i: interest rate agreed upon with the insured.
k| qxprobability that the insured will survive years before reaching age x.
k| qx=(px−k )·(px−k+1 )·...·(px )(q x )
Insured Amount

1.4.2. Annual Payments

To calculate the annual payments that a person aged 'x' will have to make uoyduring
ot tfel era tah'n'.
tnerdlaihc
of life. We use the following formula. NOTE: They depend on the insured amount calculated above.
∞
k
xä= X V k px
k=0

Where:
x: age of the person who is buying the insurance.
px : probabilidad de que una persona con edadxsobreviva a edadx.
k px=x )·...·(px+k )
n: number of years that the insurance will be in effect.
v k(1 + i)−k
agreed interest rate with the insured.

Page 4
Technical Note GMV Insurance

2. Status of Joint Life

1
Status que se encarga de cubrir a dos o mas personas ante un posible riesgo .

2.1. Joint Term Life Insurance

In joint temporary life insurance, unlike individual life insurance, we can insure one or more.
personas por un determinado tiempo, en el cual se cubrira´n al conjunto (en este caso solo se analizar´an parejas
y no un grupo m´as grande) ante la ocurrencia del primer fallecimiento, despu´es de este, el contrato dejar´a de
to be in force.

2.1.1. First Unique ´Net (PNU)

n−1
1
Ax:x:n
1 2 = X (S.A.)Vk+1qx:x
k| 1 2
k=0
Where:
x1:x2age of the person who hires the insurance and the age of their spouse.
qx:x1 probability
2 that a person with age x1and another person of age2die at age1+ 1 year
age2+ 1 respectively.
px:x1 probability
2 that a person with age x1y otra de edadx2survive to old age1+ 1 yx2+ 1
respectively.
n: number of years that the insurance will be in effect.
v k+1(1 + i)−(k+1)
agreed interest rate with the insured.
k| qx:x
1 probability
2 that insured individuals of age x1and age2they fall between ages1+k, x2 +k
and the ages1+k+ 1, x2+k+ 1.
k| qx:x
1 =2k px:x 1 2 − k+1 px:x1 2
S.A.: Suma Asegurada

2.1.2. Annuity
To calculate the annual payments of two people aged x1y edadx2depending on the sum
asegurada se tom´o la siguiente f´ormula:
n−1
ä x1 :2 :n = X Vk k p x1 :x2
k=0
Where:
x1:x2age of the person hiring the insurance and their spouse.
px:x1 probability
2 that a person of age x1and an elderly person2 sobrevivan a edadx1 + 1 y
agex2+ 1 respectivamente.
k p=x1 :x2 (p x1 :x2 )·(p x1 +1:x2 +2 )·...·(p x1 +k:x2 +k )
n: number of years that the financing will be in effect.
v k+1(1 +i)−k
i: tasa de inter´es pactada con el asegurado.

2.2. Joint Life Insurance

El Seguro Dotal de Vida Conjunta es el seguro de vida que brinda el pago de una unidad monetaria a n an˜os
for one or more people if and only if all the insured persons arrive alive at the end of period n, in case
the opposite case, upon the occurrence of the first death of at least one person before this period, the
the contract will cease to be valid.
NOTE: In this case, only pairs will be analyzed and not a larger group.
Acceptance age: 15 to 89 years
Up to 1,000,000 dollars
Hiring in pesos, dollars, or Investment Units (UDI)
1 As with individual life insurance, in the event that the policyholder or the spouse is female, benefits will be granted.
discounts by age

Page 5
Technical Note GMV Insurance

2.2.1. First Unique ´Net (PNU)

egafoelpoepfopuorgarof'n.
To calculate the actuarial present value of a pure endowment insurance nerdlaihc
(xj the following formula is used:
1 n
Ax1 :x2 :n = nE (S.A.)V
x1 :x2x1 :x 2 np

Donde:
x1:x2These are the ages of the couple in the year of hiring.
n: Representa la temporalidad anual que dura el seguro.
Vn(1 + i)−n It is the present value formula where its function is to bring values to the present.
i: Tasa de inter´es pactada con el seguro
n px :x
1 It2 is the probability that a person of age (xj ) survive n years, and that it meets the assumption
of independence.
n px:x1 = 2 (n px)(n pxIt1 is the
2 assumption of independence that refers to the fact that all lives are
merely independent.
S.A.: Insured Amount.

2.2.2. Annuity
To calculate the annual payments of two people with age (x1 ) and age (x2 during the years depending on the
suma asegurada, se tomo´ la siguiente f´ormula:
n−1
ä x1 :x2 :n = X Vk k p x1 :x2
k=0

Where:
x1:x2age of the person hiring the insurance and their spouse.
px:x1 probability
2 that a person with age x1and an elderly person2survive to age1+ 1 y
age2+ 1 respectively.
k p=x1 :x2 (p x1 :x2 )·(p x1 +1:x2 +2 )·...·(p x1 +k:x2 +k )
n: number of years that the financing will be in effect.
v k+1(1 + i)−k
i: interest rate agreed upon with the insured.

2.3. Joint Life Insurance

The Joint Life Insurance is a life insurance that provides coverage for one or more
people forever. It is presented as a solution for a group of people who decide to protect themselves in
absence of someone.

Acceptance age: 15 to 89 years.

up to 1,000,000 dollars

Hiring in pesos, dollars, or Investment Units (UDI)

2.3.1. First Unique ´Net (PNU)

Para calcular lo que vale el riesgo de cubrir al grupo de personas con edades ”x1,x2,...,xn”durante los
In the following years they have left to live, the following formula will be used:

∞
Ax= X (S.A.)k+1V k+1qx:x:....:x
k| 1 2 n
k=0

Where:
x1:...:xnages of the people who hire the insurance.
qx 1:...:xprobability
n that 'n' people of age x will die at age x.
px 1:...:xprobability
n that "n" people aged x will survive to age x.
n: number of years that the insurance will be in effect.
v k= (1 +i)−k
agreed interest rate with the insured.

Page 6
Technical Note GMV Insurance

k|qx:...:x
1 probability
n that policyholders survive until age x.
k|qx:...:x
1
=(pn x−k )·(px−k+1
1 )·...·(px1 )(qx)·...·(px−k )·(p1 x−k+11)·...·(px)qx) n n n n
S.A.: suma asegurada

2.3.2. Annual Payments

Para calcular los pagos anuales que deber´an hacer las personas con edades ”x”durante losm
eht ”n.
tahtnerdlaihc
They remain alive. We use the following formula.
NOTE: They depend on the insured sum that was calculated above.
∞
k
xä= X V k p x1 :...:xn
k=0

Where:
x1:...:xnages of the people who hire the insurance.
px:...:x
1 probability
n that people of age survive to age.
p
k x1 :...:xn =(p)·...·(p
x1 x1 +k )·...·(p)·...·(p
xn xn +k )
n: number of years that the insurance will be in effect.
v k(1 + i)−k
i: interest rate agreed upon with the insured.

Page 7
Technical Note GMV Insurance

3. Reservations
To calculate the reserve, we will calculate the policy year, so let A.P. = Policy Year:
A.P = (Valuation Year) - (Contracting Year) + 1 and the result we obtain in the A.P. will be the reserve
what we will calculate.

3.1. For an Individual Insurance

τ V = PNU - Pa¨x+τ :n+τ

Donde:
τ: it is the policy year.
τ It is the reserve.
PNU: it is the net premium.
P: amount of each annual payment.
ax∗ ∗x+τ:n+τ: is the annuity.

3.2. Joint Life Status

τV = PNU - Pa x1 +τ:x2 +τ:n+τ

Where:
it is the policy year.
τ V: it is the reservation.
PNU: it is the net premium.
P: cantidad de cada pago anual.
ax * * x1+τ:x2+τ:n+τ: is the joint life annuity.

3.3. Reserve of Pending Obligations to be Fulfilled (POF)

Covers all claims originating with their adjustment costs that have not been paid as of the date of
valuation.

OPC: es obligaciones pendientes por cumplir.

Incident Occurred: it is the incidence of the covered risk.
Reported Incidents: the incidence of a risk notified to the insurer.
Pending claim: it is to accept the reported claim.
Adjustment Expense: Correction of the valuation
Paid Claim: the amount of the claim that has already been compensated

And the formula is as follows:

ROPCt+1=ROPCt+SO[t,t+1)+GA[t,t+1)-SP[t,t+1)

Page 8
Technical Note GMV Insurance

4. Dividendos
The dividends are a percentage of the premium granted to the insured for good claims experience. For
To calculate the percentage of the dividends to be granted, the average of all percentages will be taken.
stipulated.
The stipulated percentages have been established according to the risks, such as: recurrence regarding
del tipo de seguro,la Suma Asegurada y la edad del contratante, ya que cada uno representa un riesgo diferente
very important for the total dividend percentage, which will be calculated as follows:

%Divs+ %Dive+ %Divs.a

%Divt=
3
Where:
%DivtIt is the total percentage of the dividend.
%Divs: Es el porcentaje del promedio acerca del tipo de seguro.
%Dive: Es el porcentaje del promedio acerca de la edad.
%[Link] is the percentage of the average regarding the insured amount.
3: It is the total number of stipulated percentages.
As subsequent clarifications to the calculation, the assumption of joint life is being considered referring to
that couples are of the same age, and in individual cases, the age of the contractor will be taken. Likewise
It is clarified that the ranges of the stipulated percentages will be considered independent of each other.

Page 9