AGGREGATE

EXAMPLE:

ABC Co.’s life insurance block has a 10% chance of experiencing ^$10M in liabilities. Its health insurance block has a 20% chance of experiencing ^$20M in liabilities. Finally, ABC Co’s auto insurance block has a 40% chance of experiencing ^$40M in liabilities. Therefore, the insurer calculates that its aggregate amount of liabilities will equal ^$21M (^$10M•10% + ^$20M•20% + ^$40M•40%).