Subject G - april 1998 - Paper 1 - Q21 How is the profit figure arrived at here - i can see the formula but I cant get the answers. Part two, c how is the Return on capital found? Thanks
ER says: Return on Capital Employed = Profit / Free Reserves Profit = Earned Premium − Incurred Claims − Increase in APUR − Expenses + Investment income A = −26/16 = −162.5%, B = 425/840 = 50.6%, C = 50/160 = 31.3% so for example A: -26 = 60*.9 -60-20-5+5
