Citigroup (C)

Present Value of Future Profits

Present Value of Future Profits, included in intangible assets, represents the actuarially determined present value of anticipated profits to be realized from life and accident and health business on insurance in force at the date of the Company’s acquisition of insurance businesses using the same assumptions that were used for computing-related liabilities where appropriate.  The present value of future profits is amortized over the contract period using current interest crediting rates to accrete interest and using amortization methods based on the specified products.  Traditional life insurance is amortized over the period of anticipated premiums, universal life in relation to estimated gross profits, and annuity contracts employing a level effective yield methodology.  The value of present value of future profits is reviewed periodically for recoverability to determine if any adjustment is required.

Present Value of Future Profits

Present Value of Future Profits, included in intangible assets, represents the actuarially determined present value of anticipated profits to be realized from life and accident and health business on insurance in force at the date of the Company’s acquisition of insurance businesses using the same assumptions that were used for computing-related liabilities where appropriate.  The present value of future profits is amortized over the contract period using current interest crediting rates to accrete interest and using amortization methods based on the specified products.  Traditional life insurance is amortized over the period of anticipated premiums, universal life in relation to estimated gross profits, and annuity contracts employing a level effective yield methodology.  The value of present value of future profits is reviewed periodically for recoverability to determine if any adjustment is required.

Present Value of Future Profits

        Present Value of Future Profits, included in intangible assets, represents the actuarially determined present value of anticipated profits to be realized from life and accident and health business on insurance in force at the date of the Company's acquisition of insurance businesses using the same assumptions that were used for computing-related liabilities where appropriate. The present value of future profits is amortized over the contract period using current interest crediting rates to accrete interest and using amortization methods based on the specified products. Traditional life insurance is amortized over the period of anticipated premiums, universal life in relation to estimated gross profits, and annuity contracts employing a level effective yield methodology. The value of present value of future profits is reviewed periodically for recoverability to determine if any adjustment is required.