Hi Jensen,
For 2005, the earned premium is £11.3m.
We've calculated the claims element of the £2m reserve to be £1.6m (ie 80%). So claims divided by premiums gives 1.6/11.3 = 14.16%. This is the % that the claims reserve is of the earned premium.
Coralie
Last edited by a moderator: Apr 15, 2013