Page 56 - ASCOT GROUP COMPLETE DOCUMENT (2)

Financial Projections

Assumptions

1 New Business volumes for 3-year period reflect 65% of initial regulatory business case plus
business relating to the Letters of Intent from distributors in HK.
2 All new business relates to Ascot Life intermediary sales only i.e. no direct sales
3 Distributors having submitted projected business volumes for Elite Wealth Accounts 1, 2 and 3
(EWA) assumed invested in EWA 1
4 All new business sold through a master distributor assuming an introducer (eligible for 0.5%
commission)
5 All quarterly new business volumes assumed to be invested in the middle of the quarter
6 All regular premium new business assumed to have premium term of 15 years
7 Outsourced administrator is Kane (Bermuda) with fees of 0.25% pa of funds under management
(accumulation units only) with de minimis of $250,000 pa
8 No regular premium additional contributions (single or regular)
9 No single premium additional premium contributions (top-ups)
10 No inflation (other than 3% salary costs)
11 No investment fund growth
12 Regular premium initial charge to Ascot Life of 2.5% (7.5% initial fee less maximum commission
of 5.25%)
13 Single premium initial charge to Ascot Life of 1.75% (9% initial fee less maximum commission of
7.25%)
14 Ascot Life Selected Funds annual management charge (AMC) set at maximum i.e. 1.4%
15 Death Benefit provision assumes 0.1% of Accumulation units’ value
16 No attrition as a result of a death assumed
17 No switch charges levied
18 Quarterly administration charge (1% pa) for regular premiums during initial period zero
(invested in 'shadow' or capital units)
19 Quarterly administration charge (1% pa) for regular premiums after initial period apply (invested
in accumulation units)
20 Regular premium bonuses (at 5, 10, 15, 20, 25 and 30 years) assumed to apply to varying
percentage of the book
21 Reserve for bonuses not discounted to present value i.e. overstated
22 Reserves for 15, 20, 25 and 30 year bonuses grossed up from 10 year figures
23 No interest assumed for uninvested cash into Ascot Life funds
24 No credit assumed for grants available in the Isle of Man for premises, equipment and software
(maximum £500,000)
25 GBP:USD exchange rate assumed at 1.25
26 No credit taken in Ascot Life for business written through Ascot Distribution (FE) but potential
profit within Ascot Distribution (FE) will included business written in both Ascot Life and Ascot
International funds
27 Profit & loss takes no credit for business written in Ascot International funds by Ascot
Distribution (FE) or Ascot Life