Reinsurer expected return as interest rate
For pitfall I - interest rate (considerations in selecting discount rate), the battle cards states: (Note that reinsurer's expected investment rate is IRRELEVANT in a risk transfer test)
However, for practice consideration parameter selection, reinsurer expected investment return is an alternative that better reflects the reinsurer's operations and is a more accurate estimate of loss.
Do these two statements contradict each other, or am I misinterpreting them? Thanks!