Financial Operations of Insurers According to the Insurance Information Institute (III), the largest writer of property/casualty insurance by direct premiums written in 2018, is State Farm Mutual Automobile Insurance. The 2018 annual report to policy holders can be found below and contains data for 2017 and 2018: Part 1: Balance Sheet A) Fill in the assets portion of the table and calculate Total Assets (8 points) B) Fill in the liabilities portion of the table and calculate Total Liabilities (8 points) C) Fill in the surplus portion of the table and calculate Surplus (8 points) Part 2: Income and Expense Statement D) Fill in the table and calculate Net Income (8 points) E) Calculate the Loss Ratio (8 points) F) Calculate the Expense Ratio (8 points) G) Calculate the Combined Ratio (8 points) To forecast 2019 values, assume that the growth rate in the values between 2018 and 2017 will remain the same for 2019. The growth rate can be calculated via the following formula: X X Growth Rate X = 2018 2017 2017 To calculate the 2019 values (where X is any specific variable), apply the Future Value formula as follows: X X 1 Growth Rate 2019 2018 = + ( ) The surplus can be calculated based on the following formula: Surplus Total assets Total liabilities = In part 2 of the project, the following formulas are utilized: Net Income Income Before Dividends and Taxes In = come Taxes Incurred losses Loss adjustment expense Dollars for Claims Expenses for Paying Claims Loss Ratio Premiums Earned Premiums Earned + + = = Underwriting Expense Service and Administrative Fees Expense Ratio Premiums Written Premiums Earned = = (Assume that premiums written = premiums earned) Combined Ratio Loss Ratio Expense Ratio = + Note: Be sure to format dollar values to Currency with no decimal points and rates to Percentages with two decimal places. In your report, comment on the balance sheet of State Farm, how it has changed over time, and how it is forecasted to change. In addition, comment on the Net Income and Combined Ratio and how these values have changed over time. How is the company performance in underwriting and performance overall?

STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY Statement of Condition in Millions of dollars) Assets 2018 2017 Cash and Short Term Investments $ 2,384 $ 2,527 Bonds 53,043 45,751 Una filiali Con & Preferred Slacks 47,852 55,103 Equity in Insurance Subsidiaries 40.729 39,030 Other Assels 15,857 18.121 Total Assets Liabilities Claims and Clair Expenses $ 12,554 $ 13,237 Unearned Premiums 12,924 13,132 Other Llabilities 13,634 17,358 Surplus Funds for Protection of Slale Farm Mutual Policyholders, incluxling the Investment Fluctuation Reserve $ 55,434 $ 53,863 Tunds assigned for Prolection of Customers of Subsidiaries 42,534 40,816 Funds Assigned for Catastrophe Reinsurance Assunce from Miliales 2,785 2,126 Total Liabilities and Surplus Summary of Operating Data fin Millions of dollars) 2018 2017 Premium Farned $ 43,425 $ 42,420 Less: Dollars for Claims 26,524 31,092 Expenses for Paying Claims 5,235 5,417 Service and Administrative Fees 10,385 10,192 Underwriting Gain or (Loss) Plus: Investment Gain and Other Income 5,786 4,039 Income before Dividends and Taxes Less: Dividends to Policyholders D Income Taxes incurred (Hecoverable /18 (1,9441 Net Income Part 1: Balance Sheet A) Fill in the assets portion of the table and calculate Total Assets (8 points) B) Fill in the liabilities portion of the table and calculate Total Liabilities (8 points) C) Fill in the surplus portion of the table and calculate Surplus (8 points) Part 2: Income and Expense Statement D) Fill in the table and calculate Net Income (8 points) E) Calculate the Loss Ratio (8 points) F) Calculate the Expense Ratio (8 points) G) Calculate the combined Ratio (8 points) To forecast 2019 values, assume that the growth rate in the values between 2018 and 2017 will remain the same for 2019. The growth rate can be calculated via the following formula: A] 2017 2018 Growth Rates 2019 Assets Cash and Short Term Investments Bonds Stock Equity in Subsidiaries Other Assets Total Assets B] 2017 2018 Growth Rates 2019 Liabilities Claims and Claim Expenses Unearned Premiums Other Liabilities Total Liabilities CI 2017 2018 Growth Rates 2019 Surplus Investment Fluctuation Reserve Protection of Customers of Subsidiaries Catastrophe Reinsurance Assumed from Affiliates Total Liabilities and Surplus Surplus Part 2) Income and Expense Statement D] 2017 2018 Growth Rates 2019 Operating Data Premium Earned Dollars for Claims Expenses for Paying Claims Service and Administrative Fees Underwriting Gain or (Loss) Investment Gain and Other Income Income Before Dividends and Taxes Dividends to Policy Holders Income Taxes incurred (Recoverable Net Income so {$1,944) $0 $718 $0 $1,470 E] Loss Ratio FI Expense Ratio G] Combined Ratio Financial Operations of Insurers According to the Insurance Information Institute (II), the largest writer of property/casualty insurance by direct premiums written in 2018, is State Farm Mutual Automobile Insurance. The 2018 annual report to policy holders can be found below and contains data for 2017 and 2018: STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPAN) Statement of Condition (in Millions of Dollars) Assets 2018 2017 Cash and Short Term Investments $ 2,384 $ 2,527 Bonds 53,043 45,751 Unaffiliated Common & Preferred Stocks 47,852 55,303 Equity in Insurance Subsidiaries 40,729 39,030 Other Assets 15,857 18,121 Total Assets Liabilities Claims and Claim Expenses $ 32,554 $ 33,237 Unearned Premiums 12,924 13.132 Other Liabilities 13,634 17,358 Surplus Funds for Protection of State Farm Mutual Policyholders, including the Investment Fluctuation Reserve $ 55,434 $ 53,863 Funds Assigned for Protection of Customers of Subsidiaries 42,534 40,816 Funds Assigned for Catastrophe Reinsurance Assumed from Affiliates 2.785 2,326 Total Liabilities and Surplus Summary of Operating Data (in Millions of dollars) 2018 2017 Premium Earned $ 43,426 $ 42,420 Less: Dollars for Claims 26.524 31.092 Expenses for Paying Claims 5,235 5,412 Service and Administrative Fees 101385 10,192 Underwriting Gain or (Loss) Plus: Investment Gainland Other income 5.786 4.039 Income before Dividends and Taxes Less Dividends to Policyholdet Income Taxes incurred (Recoverable) 11.944) Net Income Part 1: Balance Sheet ps Kns Byboth - Blin... Download Vuze Torrent Download... Student Das Part 1: Balance Sheet A) Fill in the assets portion of the table and calculate Total Assets (8 points) B) Fill in the liabilities portion of the table and calculate Total Liabilities (8 points) C) Fill in the surplus portion of the table and calculate Surplus (8 points) Part 2: Income and Expense Statement D) Fill in the table and calculate Net Income (8 points) E) Calculate the Loss Ratio (8 points) F) Calculate the Expense Ratio (8 points) G) Calculate the combined Ratio (8 points) To forecast 2019 values, assume that the growth rate in the values between 2018 and 2017 will remain the same for 2019. The growth rate can be calculated via the following formula: Growth Rate X2018 - 2012 . X 2017 To calculate the 2019 values (where X is any specific variable), apply the Future Value formula as follows: X X (1+Growth Rate The surplus can be calculated based on the following formular Surplus Total assets Total liabilities In part 2 of the project, the following formulas are utilized: Net Income Income Before Dividends and Taxes Income Taxes In part 2 of the project, the following formulas are utilized: Net Income = Income Before Dividends and Taxes -Income Taxes Loss Ratio Incurred losses +Loss adjustment expense Dollars for Claims + Expenses for Paying Claims Premiums Earned Premiums Earned Expense Ratio Underwriting Expense Service and Administrative Fees Premiums Written Premiums Earned (Assume that premiums written - premiums earned) Combined Ratio -Loss Ratio + Expense Ratio Note: Be sure to format dollar values to Currency with no decimal points and rates to Percentages with two decimal places. In your report, comment on the balance sheet of State Farm, how it has changed over time, and how it is forecasted to change. In addition, comment on the Net Income and Combined Ratio and how these values have changed over time. How is the company performance in underwriting and performance overall? 2017 2018 Growth Rates 2019 Assets Cash and Short Term Investments Bonde Stock Equity in Subsidiaries Other Assets Total Assets 2017 2018 Growth Rates 2019 Liabilities Claims and Claim Expenses Unearned Premium Other Liabile Total abities 70) 2017 2018 Growth Rates 2019 Surplus Investment fluctuation Reserve Protection of Customers of Subsidiaries 2 Catastrophe Reinsurance Assumed from Affiliates 3 Total Liabilities and Surplus 4 5 Surplus 6 7 2017 2018 Growth Rates 2019 9 Part 2) Income and Expense Statement 0 1 D 2 3 Operating Data 4 Premium Canned 5 Dollars for Claims -6 Expenses for Paying Claims 17 Service and Administrative Tees 18 Underwriting Gain or (Loss) 19 Investment Gails and Other Income 0 Income Before Dividends and Taxes 51 Dividends to Policy Holders 52 Income Taxes incurred (Recoverable) 3 Net Income $0 151,944) $0 $718 50 $1,470 55 0 56 Loss Ratio 57 19 Expense Ratio 52 Combined Ratio 53 STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY Statement of Condition in Millions of dollars) Assets 2018 2017 Cash and Short Term Investments $ 2,384 $ 2,527 Bonds 53,043 45,751 Una filiali Con & Preferred Slacks 47,852 55,103 Equity in Insurance Subsidiaries 40.729 39,030 Other Assels 15,857 18.121 Total Assets Liabilities Claims and Clair Expenses $ 12,554 $ 13,237 Unearned Premiums 12,924 13,132 Other Llabilities 13,634 17,358 Surplus Funds for Protection of Slale Farm Mutual Policyholders, incluxling the Investment Fluctuation Reserve $ 55,434 $ 53,863 Tunds assigned for Prolection of Customers of Subsidiaries 42,534 40,816 Funds Assigned for Catastrophe Reinsurance Assunce from Miliales 2,785 2,126 Total Liabilities and Surplus Summary of Operating Data fin Millions of dollars) 2018 2017 Premium Farned $ 43,425 $ 42,420 Less: Dollars for Claims 26,524 31,092 Expenses for Paying Claims 5,235 5,417 Service and Administrative Fees 10,385 10,192 Underwriting Gain or (Loss) Plus: Investment Gain and Other Income 5,786 4,039 Income before Dividends and Taxes Less: Dividends to Policyholders D Income Taxes incurred (Hecoverable /18 (1,9441 Net Income Part 1: Balance Sheet A) Fill in the assets portion of the table and calculate Total Assets (8 points) B) Fill in the liabilities portion of the table and calculate Total Liabilities (8 points) C) Fill in the surplus portion of the table and calculate Surplus (8 points) Part 2: Income and Expense Statement D) Fill in the table and calculate Net Income (8 points) E) Calculate the Loss Ratio (8 points) F) Calculate the Expense Ratio (8 points) G) Calculate the combined Ratio (8 points) To forecast 2019 values, assume that the growth rate in the values between 2018 and 2017 will remain the same for 2019. The growth rate can be calculated via the following formula: A] 2017 2018 Growth Rates 2019 Assets Cash and Short Term Investments Bonds Stock Equity in Subsidiaries Other Assets Total Assets B] 2017 2018 Growth Rates 2019 Liabilities Claims and Claim Expenses Unearned Premiums Other Liabilities Total Liabilities CI 2017 2018 Growth Rates 2019 Surplus Investment Fluctuation Reserve Protection of Customers of Subsidiaries Catastrophe Reinsurance Assumed from Affiliates Total Liabilities and Surplus Surplus Part 2) Income and Expense Statement D] 2017 2018 Growth Rates 2019 Operating Data Premium Earned Dollars for Claims Expenses for Paying Claims Service and Administrative Fees Underwriting Gain or (Loss) Investment Gain and Other Income Income Before Dividends and Taxes Dividends to Policy Holders Income Taxes incurred (Recoverable Net Income so {$1,944) $0 $718 $0 $1,470 E] Loss Ratio FI Expense Ratio G] Combined Ratio Financial Operations of Insurers According to the Insurance Information Institute (II), the largest writer of property/casualty insurance by direct premiums written in 2018, is State Farm Mutual Automobile Insurance. The 2018 annual report to policy holders can be found below and contains data for 2017 and 2018: STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPAN) Statement of Condition (in Millions of Dollars) Assets 2018 2017 Cash and Short Term Investments $ 2,384 $ 2,527 Bonds 53,043 45,751 Unaffiliated Common & Preferred Stocks 47,852 55,303 Equity in Insurance Subsidiaries 40,729 39,030 Other Assets 15,857 18,121 Total Assets Liabilities Claims and Claim Expenses $ 32,554 $ 33,237 Unearned Premiums 12,924 13.132 Other Liabilities 13,634 17,358 Surplus Funds for Protection of State Farm Mutual Policyholders, including the Investment Fluctuation Reserve $ 55,434 $ 53,863 Funds Assigned for Protection of Customers of Subsidiaries 42,534 40,816 Funds Assigned for Catastrophe Reinsurance Assumed from Affiliates 2.785 2,326 Total Liabilities and Surplus Summary of Operating Data (in Millions of dollars) 2018 2017 Premium Earned $ 43,426 $ 42,420 Less: Dollars for Claims 26.524 31.092 Expenses for Paying Claims 5,235 5,412 Service and Administrative Fees 101385 10,192 Underwriting Gain or (Loss) Plus: Investment Gainland Other income 5.786 4.039 Income before Dividends and Taxes Less Dividends to Policyholdet Income Taxes incurred (Recoverable) 11.944) Net Income Part 1: Balance Sheet ps Kns Byboth - Blin... Download Vuze Torrent Download... Student Das Part 1: Balance Sheet A) Fill in the assets portion of the table and calculate Total Assets (8 points) B) Fill in the liabilities portion of the table and calculate Total Liabilities (8 points) C) Fill in the surplus portion of the table and calculate Surplus (8 points) Part 2: Income and Expense Statement D) Fill in the table and calculate Net Income (8 points) E) Calculate the Loss Ratio (8 points) F) Calculate the Expense Ratio (8 points) G) Calculate the combined Ratio (8 points) To forecast 2019 values, assume that the growth rate in the values between 2018 and 2017 will remain the same for 2019. The growth rate can be calculated via the following formula: Growth Rate X2018 - 2012 . X 2017 To calculate the 2019 values (where X is any specific variable), apply the Future Value formula as follows: X X (1+Growth Rate The surplus can be calculated based on the following formular Surplus Total assets Total liabilities In part 2 of the project, the following formulas are utilized: Net Income Income Before Dividends and Taxes Income Taxes In part 2 of the project, the following formulas are utilized: Net Income = Income Before Dividends and Taxes -Income Taxes Loss Ratio Incurred losses +Loss adjustment expense Dollars for Claims + Expenses for Paying Claims Premiums Earned Premiums Earned Expense Ratio Underwriting Expense Service and Administrative Fees Premiums Written Premiums Earned (Assume that premiums written - premiums earned) Combined Ratio -Loss Ratio + Expense Ratio Note: Be sure to format dollar values to Currency with no decimal points and rates to Percentages with two decimal places. In your report, comment on the balance sheet of State Farm, how it has changed over time, and how it is forecasted to change. In addition, comment on the Net Income and Combined Ratio and how these values have changed over time. How is the company performance in underwriting and performance overall? 2017 2018 Growth Rates 2019 Assets Cash and Short Term Investments Bonde Stock Equity in Subsidiaries Other Assets Total Assets 2017 2018 Growth Rates 2019 Liabilities Claims and Claim Expenses Unearned Premium Other Liabile Total abities 70) 2017 2018 Growth Rates 2019 Surplus Investment fluctuation Reserve Protection of Customers of Subsidiaries 2 Catastrophe Reinsurance Assumed from Affiliates 3 Total Liabilities and Surplus 4 5 Surplus 6 7 2017 2018 Growth Rates 2019 9 Part 2) Income and Expense Statement 0 1 D 2 3 Operating Data 4 Premium Canned 5 Dollars for Claims -6 Expenses for Paying Claims 17 Service and Administrative Tees 18 Underwriting Gain or (Loss) 19 Investment Gails and Other Income 0 Income Before Dividends and Taxes 51 Dividends to Policy Holders 52 Income Taxes incurred (Recoverable) 3 Net Income $0 151,944) $0 $718 50 $1,470 55 0 56 Loss Ratio 57 19 Expense Ratio 52 Combined Ratio 53