In 1952 he printed his "Review of the Precept of Life-Office Valuations," by which he defined immunization as "the investment of the property in such a method that the existing business is immune to a general change in the rate of curiosity." Redington believed that if an organization (for example, a life insurance coverage firm) structured its investment portfolio property to be of the same duration as its liabilities, and market curiosity charges decreased in the course of the planning horizon, the lower yield earned on reinvested money flows would be offset by the increased worth of portfolio assets remaining at the tip of the planning period.
https://telegra.ph/0107-wkwhvsoefdlbf-01-07
In 1952 he printed his "Review of the Precept of Life-Office Valuations," by which he defined immunization as "the investment of the property in such a method that the existing business is immune to a general change in the rate of curiosity." Redington believed that if an organization (for example, a life insurance coverage firm) structured its investment portfolio property to be of the same duration as its liabilities, and market curiosity charges decreased in the course of the planning horizon, the lower yield earned on reinvested money flows would be offset by the increased worth of portfolio assets remaining at the tip of the planning period. https://telegra.ph/0107-wkwhvsoefdlbf-01-07