Hi Andy
I've had a quick look at it and agree with you that it's hard to see where the life assurers are making their money on this. That said, presumably the folk who do the pricing on these things can count well and have well trusted methods for their calculations. I'll try expand on my views during the week. In the meantime, if Gordon Gekko (or anyone else) could explain where the life assurers invest their premiums - that would be great. I had understood that the majority of such assets were invested in bonds with consequent very muted return expectations.