Exercise 19 The non-life insurance company XX has the shareholders' fund of 16 million PLN as of January 1st, 2009. The company forecast the following results from its insurance and operational activity in the forthcoming two years 2009-2010. Items 2009 2010 Gross written premiums 12,080,0 thereof: outward reinsurance premiums 4,860,0 Change in gross provision for unearned premiums 2,4 22,0 thereof reinsurers' share in change of provision... 0,9 18,0 Claims paid (gross) 3,6 24,0 thereof reinsurers' share in gross claims paid 0,6 14,4 Change in gross provisions for outstanding claims 1,8 12,0 thereof reinsurers' share in change in gross..... 0,6 6,0 Acquisition and administrative costs 17,2 26,4 Reinsurance commissions and profit participation 1,2 4,8 Other technical incomes and expenses 0,0 0,0 Net investment incomes 1,4 3,6 Other operational revenues and expenses 0,01 0,0 the accounting year 2009 compute the following: a. the technical result and the gross profit b. the gross loss ratio and the net loss ratio 2. Determine the required inflow of the shareholders' capital by the end of 2009 and 2010 (if any needed). Assume 1 = 4 PLN Exercise 19 The non-life insurance company XX has the shareholders' fund of 16 million PLN as of January 1st, 2009. The company forecast the following results from its insurance and operational activity in the forthcoming two years 2009-2010. Items 2009 2010 Gross written premiums 12,080,0 thereof: outward reinsurance premiums 4,860,0 Change in gross provision for unearned premiums 2,4 22,0 thereof reinsurers' share in change of provision... 0,9 18,0 Claims paid (gross) 3,6 24,0 thereof reinsurers' share in gross claims paid 0,6 14,4 Change in gross provisions for outstanding claims 1,8 12,0 thereof reinsurers' share in change in gross..... 0,6 6,0 Acquisition and administrative costs 17,2 26,4 Reinsurance commissions and profit participation 1,2 4,8 Other technical incomes and expenses 0,0 0,0 Net investment incomes 1,4 3,6 Other operational revenues and expenses 0,01 0,0 the accounting year 2009 compute the following: a. the technical result and the gross profit b. the gross loss ratio and the net loss ratio 2. Determine the required inflow of the shareholders' capital by the end of 2009 and 2010 (if any needed). Assume 1 = 4 PLN
