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HandWiki. Hattendorf's Theorem. Encyclopedia. Available online: https://encyclopedia.pub/entry/32490 (accessed on 14 October 2026).
HandWiki. Hattendorf's Theorem. Encyclopedia. Available at: https://encyclopedia.pub/entry/32490. Accessed October 14, 2026.
HandWiki. "Hattendorf's Theorem" Encyclopedia, https://encyclopedia.pub/entry/32490 (accessed October 14, 2026).
HandWiki. (2022, November 02). Hattendorf's Theorem. In Encyclopedia. https://encyclopedia.pub/entry/32490
HandWiki. "Hattendorf's Theorem." Encyclopedia. Web. 02 November, 2022.
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Hattendorff's Theorem, attributed to K. Hattendorff (1868), is a theorem in actuarial science that describes the allocation of the variance or risk of the loss random variable over the lifetime of an actuarial reserve. In other words, Hattendorff's theorem demonstrates that the variation in the present value of the loss of an issued insurance policy can be allocated to the future years during which the insured is still alive. This, in turn, facilitates the management of risk prevalent in such insurance contracts over short periods of time.
actuarial science
random variable
present value
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