Requirements; a. Using the statement above compute for the following financial performance indicators; [(1 mark for the correct process + 2 marks for the correct answer) x (5) ] = 15 marks i. Loss Ratio ii. Expense Ratio iii. Combined Ratio iv. Investment Income Ratio v. Over-all Operating Ratio b. Assuming that the number of exposures of Jasim Insurance Company is 900,000 unit and their expected loss ratio is 30%, using requirement (a) find the following; [ (1 mark for the correct process + 2 marks for the correct answer) x (2)] = 6 marks i. Gross rate (pure premium method) ii. Rate of change (using loss ratio method) 1. Durant Fire Insurance has a retention limit of BD 100,000 and ceded the remaining BD 200,000 to Cury Fire Insurance Company. Considering the reinsurance agreement entered by both insurance company, compute the following: a. Total Underwriting Capacity as an effect ceding. (I mark correct value) b. Distribution of loss if the underwriting value of the loss is BD 250,000 and the actual incurred loss is BD 12,000. (2 mark for the correct process + 1 marks for the correct answer=3 marks) 2. Below is the Income and Expense Statement of HEI Insurance Company; HEI Insurance Company Income and Expense Statement January 1, 2018 December 31, 2018 Revenue Premiums Written Premiums Farned A 800,500.00 Investment Income Interest Dividiends Rental Income Gain on Sale of Securities Total Investment Income Total Revenue 300,000.00 100,200.00 50,000.00 10,000.00 460,200.00 1,260,700,00 B Net Lossess Incured Loss Adjustments Expenses Total Lossess and Loss Adj. Expenses 310,200.00 Commission Premium Tax General Insurance Expense Total Underwriting Expense Total Expenses 290,000.00 10,000.00 320,000.00 620,000.00 930,200.00 Net Income Before Tax Federal Income Tax NOT income 330,500.00 105,760.00 ZA. 40.00 Requirements; a. Using the statement above compute for the following financial performance indicators; [(1 mark for the correct process + 2 marks for the correct answer) x (5) ] = 15 marks i. Loss Ratio ii. Expense Ratio iii. Combined Ratio iv. Investment Income Ratio v. Over-all Operating Ratio b. Assuming that the number of exposures of Jasim Insurance Company is 900,000 unit and their expected loss ratio is 30%, using requirement (a) find the following; [ (1 mark for the correct process + 2 marks for the correct answer) x (2)] = 6 marks i. Gross rate (pure premium method) ii. Rate of change (using loss ratio method) 1. Durant Fire Insurance has a retention limit of BD 100,000 and ceded the remaining BD 200,000 to Cury Fire Insurance Company. Considering the reinsurance agreement entered by both insurance company, compute the following: a. Total Underwriting Capacity as an effect ceding. (I mark correct value) b. Distribution of loss if the underwriting value of the loss is BD 250,000 and the actual incurred loss is BD 12,000. (2 mark for the correct process + 1 marks for the correct answer=3 marks) 2. Below is the Income and Expense Statement of HEI Insurance Company; HEI Insurance Company Income and Expense Statement January 1, 2018 December 31, 2018 Revenue Premiums Written Premiums Farned A 800,500.00 Investment Income Interest Dividiends Rental Income Gain on Sale of Securities Total Investment Income Total Revenue 300,000.00 100,200.00 50,000.00 10,000.00 460,200.00 1,260,700,00 B Net Lossess Incured Loss Adjustments Expenses Total Lossess and Loss Adj. Expenses 310,200.00 Commission Premium Tax General Insurance Expense Total Underwriting Expense Total Expenses 290,000.00 10,000.00 320,000.00 620,000.00 930,200.00 Net Income Before Tax Federal Income Tax NOT income 330,500.00 105,760.00 ZA. 40.00
