L
LastHurdles
Member
When calculating insurance profit why do we allow for investment return rather than just the investment income (which is 5% of the assets held at the start of the year)?
If I wanted to calculate an investment return ratio what would the numerator and denominator be?
This is a general question- should earned premium be net of DAC or gross? The core readin seems to specify earned premium as gross of DAC. Sometimes questions say general expenses is eg 5% earned premium so it isn't clear to me whether this earned premium gross or net of DAC and I'm sure I've solutions not consistently using one or the other
Finally, in this question the loss ratios quoted are assumed to be gross of acquisition cost. Should I assume this is the case all the time unless specifically stated otherwise?
Thanks!
If I wanted to calculate an investment return ratio what would the numerator and denominator be?
This is a general question- should earned premium be net of DAC or gross? The core readin seems to specify earned premium as gross of DAC. Sometimes questions say general expenses is eg 5% earned premium so it isn't clear to me whether this earned premium gross or net of DAC and I'm sure I've solutions not consistently using one or the other
Finally, in this question the loss ratios quoted are assumed to be gross of acquisition cost. Should I assume this is the case all the time unless specifically stated otherwise?
Thanks!