1. Profitable operations are necessary for insurance companies to operate as a going concern. Measurement of earnings focuses on an insurers ability to efficiently translate its strategies and competitive strengths into growth opportunities and sustainable profit margins. How the company analyzes the profitability of the underwriting and investment functions separately? Apply the proper formulas to calculate the earning ratios of the said insurance company.
   1. Premium Growth: Gross Premium Written (Y1) - Gross Premium Written (Y0) x 100 /Gross Premium Written (YO).It indicates growth in business undertaken by the insurance entity.
   2. Risk retention: Net premium Written/ Gross Premium written. It Indicates the level of risks retained by the insurer. Reinsurance plays an essential role in the risk-spreading process
   3. Loss Ratio: (Net claims Incurred /Net Premium Earned)*100. The ratio measures the companys loss experience as a proportion of premium income earned during the year. The loss ratio is a reflection on the nature of risk underwritten and the adequacy or inadequacy of pricing of risks
   4. Expense Ratio: underwriting expenses/premium written

The expense ratio reflects the efficiency of insurance operations. The expense ratio for an insurer would be analyzed by class of business, along with the trend of the same

5. Combined ratio: Loss Ratio + Expense Ratio. Combined ratio is a reflection of the underwriting expense as well as operating expenses structure of the insurer
6. Investment Yield: Interest income, rents and other investment income/ Average total investments. This ratio measures the average return on the companys invested

assets before and after capital gains and losses. While calculating the investment yield including capital gains, both realised as well as unrealised capital gains are considered