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What is the capital structure of this company? (capital and surplus divided by total assets) What is the capital Structure of this company' (capital and
What is the capital Structure of this company' (capital and surplus divided by total assets) Bonds: risks of junk bonds and nonperformiug, rnortgagc backed securities. Stocks: risks of thc market fluctuations Mortgages: risk of nonperforming rnortgages, no liquidity Real Estate: risks Of real estate collapse and lack of liquidity Policy Loans: risk Of inability Of policyholders to pay Other Assets Total Liabilities and Capital and Surplus Unearned Premium Reserve (should be 2500 adcquate so premium refunds can be made in thc event Of cancellation) Loss reserves 800 300 200 296 304 (risk of catastrophes and miscalculations by actuaries (longeviy risk) and lack of underwriting pension fund reserves: risk of inability to keep thc promises of thc guarantees Commissions payable Other liabilities Total Liabilities Capital and Surplus Total Total Liabilities + Capital and Surplus 1010 1500 2850 1550 4400
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