lcai

surplus=assets - liabilities

assets have gone up 10% (9% return objective + 100 bps more).
liabilities have increased by 12% - so liabilitiies increase > assets increase.
so assets - liabilities would go up more.

given 298$ = liabs, assets=300$
surplus=300-298=2

liabs become 298*1.12=333.76
assets became 300*1.1=330

so assets - liabs = surplus=330-333.76 = -3.76

CP