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Q&a2 - Q.2.6

Discussion in 'CA1' started by Jesoos, Sep 7, 2015.

  1. Jesoos

    Jesoos Member

    Hi

    I am wondering why the investment income was not mentioned as part of the cash flows of a general insurer.

    Is it because the term of general insurance contracts are generally too short that investment income won't be financially significant? :p

    Thanks!
     
    Jesoos, Sep 7, 2015
    #1
  2. Oxymoron

    Oxymoron Ton up Member

    Yes, general insurance contracts (with certain exceptions) are mostly renewable every year and investments are mostly held in low yielding liquid assets to match liabilities.
     
    Oxymoron, Sep 8, 2015
    #2
  3. Jesoos

    Jesoos Member

    Thanks! :cool:
     
    Jesoos, Sep 9, 2015
    #3

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