2 | For this problem, assume earned premium is the same as the written premium. Here is a part of financials for State Auto Financial | ||||||||||
dollars in millions | |||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | |||||||
Earned Premiums | 1,238.00 | 1,276.10 | 1,291.10 | 1,275.90 | 1,068.70 | ||||||
Loss Ratio | 64.30% | 72% | 73% | 67.80% | 72% | ||||||
Expense Ratio | 36.30% | 35.10% | 33.50% | 33.80% | 34.50% | ||||||
Dividend Ratio | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | ||||||
Combined Ratio | |||||||||||
Loss and Loss Adjustment Expenses | |||||||||||
Underwriting Expenses |
2 For this problem, assume earned premium is the same as the written premium. Here is...
2 For this problem, assume earned premium is the same as the written premium. Here is a part of financials for State Auto Financial dollars in millions 2018 2017 2016 2015 2014 Earned Premiums 1,238.00 1,276.10 1,291.10 1,275.90 1,068.70 Loss Ratio 64.30% 72% 73% 67.80% 72% Expense Ratio 36.30% 35.10% 33.50% 33.80% 34.50% Dividend Ratio 0.0% 0.0% 0.0% 0.0% 0.0% Combined Ratio Loss and Loss Adjustment Expenses Underwriting Expenses
The following table shows the performance of Garage Insurance Company for the current and prior year Current Year Prior Year Net Written Premiums 174,424,780 204,354,576 Net Earned Premiums 138,550,030 164,892,997 Losses Incurred 79,255,459 97,184,368 Loss Adjustment Expenses Incurred 15,794,915 15,557,773 Other Underwriting Expenses 72,318,360 79,866,582 Dividends Paid to Policyholders $ - $ - No dividends paid to policyholders Underwriting Income Loss Ratio Expense Ratio Combined Ratio
The following table shows the performance of Garage Insurance Company for the current and prior year Current Year Prior Year Net Written Premiums 174,424,780 204,354,576 Net Earned Premiums 138,550,030 164,892,997 Losses Incurred 79,255,459 97,184,368 Loss Adjustment Expenses Incurred 15,794,915 15,557,773 Other Underwriting Expenses 72,318,360 79,866,582 Dividends Paid to Policyholders $ - $ - No dividends paid to policyholders Underwriting Income Loss Ratio Expense Ratio Combined Ratio
1. (10 points) Assume a company has the following information about expenses Written Premium Earned Premium Commissions and Brokerage Expenses incurred Other Acquisition Expenses Incurred General Expenses Taxes, Licenses & Fees Incurred 2016 2017 2018 Expense Ratio Expense Ratio ($000s) 6,100 5,920 12.0% 13.0% 945 12.8% 12.7% 760 5.0% 5.5% 325 2.1% 2.2% 130 Questions: a. (5 points) Use the three-year average to calculate a total expense ratio, for use in ratemak- ing, assuming all expenses are variable. b. (5...
Exercise in Financial Ratios Answer the following questions: If the annual cost of an insurance policy is $1,500.00, and it is effective on May 01, 20 10. I. What is the reported written premium amount for 2010 2. What is the earned premium on September 01, 2010? 3. What is the earned premium on January 01, 2011? 4. When the premium is fully earned? XXX Insurance Company posted the following results for 2006: 1. Written Premium: $240,000,000.00 2. Earned Premium:...
Insurance Company Financial Statements – fill in the rose shaded blanks 120,000 101,000 Bonds Common Stocks Real Estate Cash & Short-term Investments Mortgage-backed Securities Total Invested Assets 250,000 80,000 20,000 12,000 30,000 Loss Reserves Unearned Premiums Loss-adjustment Expenses Commissions Payable Other Liabilities Total Liabilities 9,000 11,000 255,000 29,600 Premiums Receivable Equipment Other Assets 400 16,000 Paid-in Surplus Unassigned Surplus 18,000 Total Admitted Assets Total Liabilities & Surplus What is the balance sheet equation? 206,000 Premiums Written Premiums Earned for the...
Carolyn is senior vice president of finance and chief
actuary
PART TWO / The Private Insurance Industry The the resc tios А CASE APPLICATION Carolyn is senior vice president of finance and chief actu ary for Rock Solid Insurance Company (RSIC). Lonnie 3 3. Rock Solid's net underwriting result last year was . Rock Solid's net is double-majoring in finance and mathematics at State $540,000 loss. Explain how it is possible that Rock University. Lonnie applied for an internship with...
083 Xx Dec 31, 2015 Dec 31, 2014 $ 390 5,864 695 1,425 863 748 9,985 $ 994 6,309 774 1,771 1,004 898 11,750 28,213 Consolidated Balance Sheets - USD ($) $ in Millions 2 Current assets 3 Cash 4 Short-term investments 5 Restricted cash and short-term investments 6 Accounts receivable, net 7 Aircraft fuel, spare parts and supplies, net 8 Prepaid expenses and other 9 Total current assets 10 Operating property and equipment 11 Flight equipment 12 Ground property...
Dec 31, 2015 Dec. 31, 2014 $ 1,972 1,465 2,020 $ 2,088 1,217 2,297 119 925 379 534 318 318 1,987 1,078 796 701 Consolidated Balance Sheets - USD ($) $ in Millions 2 Current Assets: 3 Cash and cash equivalents 4 Short-term investments Accounts receivable, net of an allowance for uncollectible accounts of $9 and $11 at 5 December 31, 2015 and 2014, respectively 6 Hedge margin receivable 7 Fuel inventory Expendable parts and supplies inventories, net of an...
Dec 31, 2015 Dec 31, 2014 $ 390 5,864 695 1,425 863 748 9,985 $ 994 6,309 774 1,771 1,004 898 11,750 Consolidated Balance Sheets - USD ($) $ in Millions 2 Current assets 3 Cash 4 Short-term investments 5 Restricted cash and short-term investments 6 Accounts receivable, net 7 Aircraft fuel, spare parts and supplies, net 8 Prepaid expenses and other 9 Total current assets 10 Operating property and equipment 11 Flight equipment 12 Ground property and equipment 13...