ABSTRACT
This chapter reviews the principles and practice of life-office valuations in the light of modern conditions. It was difficult, however, to deal satisfactorily with the principles of valuation in vacuo without reference to more fundamental principles. The foundations of actuarial practice were laid before the 1914 war. Since then there has been a considerable change in general outlook, the magnitude of which time may prove to have been greater than we now realize. In my opinion it does not lead to clarity of thought to make arbitrary exchanges between these groups. The word 'matching' implies the distribution of assets to make them, as far as possible, equally as vulnerable as the liabilities to those influences which affect both. In its widest sense this principle includes such important aspects as the matching of assets and liabilities in currencies.
