Case 3: Part A (5 Marks) National Life & General Insurance Company is one of the leading insurance companies in the Sultanate of Oman and always on the lookout for talented, committed, and qualified people who are driven to achieve profitable growth for the company as well as motivated to progress in their career. You are a fresh accounting graduate and joined the company, as a part of your training manager of the company asked you to join as an assistant to the actuaries. As trainee actuaries explained to you that the Revenue account or Balance sheet of a life insurance company does not disclose the profit or loss for a given period. To ascertain profits or losses of a life insurance company a Valuation Balance Sheet is prepared once in every two years. He provided you with amounts of balances of Life assurance funds for the previous year and current year respectively, as on 31st December 2018 is OMR 6,400.550 and 31st December 2019 was OMR 7,800,600. And net liability for the period was given as OMR 2,580,200 The following information also relates to the current period ending 31 December 2019: an interim bonus paid during the period was OMR 255,500; Dividend still unpaid for the 31* December 2018 was OMR 80,000 and Surplus brought forward from the period 2018 was OMR 226,000; Premiums collected for the current period OMR 7,745,000 Actuaries also told to prepare a valuation balance sheet with a change in net liability as OMR 5,000,000 for the year-end of 31" December 2019 whereas there is no change in Balance of Life Assurance Fund and other information related to the current year. You are asked to prepare: a) Valuation Balance Sheet for NLGIC as at 31st December 2019. (2 Marks) b) Find the Deficit / Surplus earned by the company for the period 2019 (2 Marks) c) Comment on the changes of surplus earned for 2019 and explain the effect of the increase of net liability (50 Words minimum/1 Mark) 8 Page Case 3: Part A (5 Marks) National Life & General Insurance Company is one of the leading insurance companies in the Sultanate of Oman and always on the lookout for talented, committed, and qualified people who are driven to achieve profitable growth for the company as well as motivated to progress in their career. You are a fresh accounting graduate and joined the company, as a part of your training manager of the company asked you to join as an assistant to the actuaries. As trainee actuaries explained to you that the Revenue account or Balance sheet of a life insurance company does not disclose the profit or loss for a given period. To ascertain profits or losses of a life insurance company a Valuation Balance Sheet is prepared once in every two years. He provided you with amounts of balances of Life assurance funds for the previous year and current year respectively, as on 31st December 2018 is OMR 6,400.550 and 31st December 2019 was OMR 7,800,600. And net liability for the period was given as OMR 2,580,200 The following information also relates to the current period ending 31 December 2019: an interim bonus paid during the period was OMR 255,500; Dividend still unpaid for the 31* December 2018 was OMR 80,000 and Surplus brought forward from the period 2018 was OMR 226,000; Premiums collected for the current period OMR 7,745,000 Actuaries also told to prepare a valuation balance sheet with a change in net liability as OMR 5,000,000 for the year-end of 31" December 2019 whereas there is no change in Balance of Life Assurance Fund and other information related to the current year. You are asked to prepare: a) Valuation Balance Sheet for NLGIC as at 31st December 2019. (2 Marks) b) Find the Deficit / Surplus earned by the company for the period 2019 (2 Marks) c) Comment on the changes of surplus earned for 2019 and explain the effect of the increase of net liability (50 Words minimum/1 Mark) 8 Page
