**Analyzing Insurer Financial Ratio Calculations—Activities 1****Week 3 Assignment 1 Case 1—Analyzing a Property-Casualty Insurer’s Profitability**You have been asked by your boss to determine the profitability of Insurance Company. To do so, calculate these ratios: loss ratio, expense ratio, combined ratio, investment income ratio, and overall operating ratio. Insurance Company provided you with this information:| **Item** | **Amount** ||--------------------------------------|--------------|| Incurred underwriting expenses | $7,500,000 || Incurred losses and loss adjustment expenses | 37,000,000 || Net written premiums | 22,500,000 || Earned premiums | 21,500,000 || Net investment income | 2,050,000 |Is Insurance Company profitable? How did you come to this conclusion?**Graph/Diagram Explanation:**There are no graphs or diagrams in this text. The provided information is purely tabular and numerical, designed for ratio analysis to determine profitability.

Insurance is agreement between insurer and insured where insurer promises to compensate insured for any loss occurred to him due to happening of event. Insurance simply reduces risk of person.Calculate financial ratios as below: Loss Ratio=Losses Incurred+Adjusted ExpensesEarned Premiums=37,000,00021,500,000=1.72093=172.09%Expense Ratio=Expenses Written Premiums=7,500,00022,500,000=0.3333=33.33%Combined Ratio=Loss Ratio+Expense Ratio=172.09+33.33=205.42%Investment Income Ratio=Net Investment IncomeEarned Premiums=2,050,00021,500,000=0.095348=9.53%Overall Operating Ratio=Combined Ratio-Investment Income Ratio=205.42-9.53=195.89% Hence, Ratio analysis shows that company is not profitable as it has high Combined Ratio and Overall Operating ratio. Company is not able to cover its losses and expenses from Premiums.

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Finance

You have been asked by your boss to determine the profitability of Insurance Company. To do so, calculate these ratios: loss ratio, expense ratio, combined ratio, investment income ratio, and overall operating ratio. İnsurance Company provided you with this information: Item Incurred underwriting expenses Incurred losses and loss adjustment expenses Net written premiums Earned premiums Net investment income Amount $7,500,000 37,000,000 22,500,000 21,500,000 2,050,000 Is Insurance Company profitable? How did you come to this conclusion?

You have been asked by your boss to determine the profitability of Insurance Company. To do so, calculate these ratios: loss ratio, expense ratio, combined ratio, investment income ratio, and overall operating ratio. İnsurance Company provided you with this information: Item Incurred underwriting expenses Incurred losses and loss adjustment expenses Net written premiums Earned premiums Net investment income Amount $7,500,000 37,000,000 22,500,000 21,500,000 2,050,000 Is Insurance Company profitable? How did you come to this conclusion?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Prepare a blance sheet
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Prepare a Vertical and Horizontal Analysis of the Statement of Comprehensive Income.
Evaluate the company's financial position and results of operation using the comparative statement analysis: i. Short-term solvency analysis ii. Long-term financial position analysis iii. Operating efficiency and profitability analysis
Based on financial reports prepare ratio analysis and interpret the result of the Following ratios: B) Leverage : Debt to Total Assets Ratio, Debt to Equity Ratio
A domestic insurance company had the following collections: Health and accident insurance P 2,340,000 Motor vehicle insurance 1,250,000 Life and disability insurance Property Insurance 1,850,000 2,840,000 The percentage tax due is 92,500 414,000 272,000 83,800
a. Return on equityb. Total assets turnoverc. Return on assetsd. Current ratioe. Receivables turnover
HCA Healthcare, Inc. (HCA) is a publicly traded, for-profit, large healthcare system. Using the data found in the link below: a) calculate the operating margin for 2021, 2020, 2019, and 2018; b) provide a short description of any trends you might see with the operating margin regarding the financial health of this company. https://finance.yahoo.com/quote/HCA/financials?p=HCA >
The accounts receivable of VERADIO COMPANY were stated at P1,467,000 in a balance sheet submitted to a banker for credit. Upon analysis, the asset was found to consist of the following items: Due from customers on open account P 1,125,000 Acknowledged claim for damages 22,500 Due from consignee at billed price – cost price being P22,500 30,000 Investment in and advances to affiliated company 150,000 Loans to officers and employees 13,500 Deposits with municipalities – bids for contracts 67,500 Unpaid capital stock subscriptions 60,000 Advances to creditors for merchandise purchased but not received 24,000 Cash advanced to salesmen for traveling expenses 4,500 Allowance for doubtful accounts ( 30,000) P1,467,000 The amount of P1,125,000 due from customers was the remaining balance after deducting accounts with credit balances of P6,000. During your examination, you noted that on December 31, the company assigned P300,000 of customers’ accounts to secure a 17%,…
calculate the quick assets (in $) and acid test ratio for the given company. round ratios to the nearest hundredth.
All-Hands Property & Casualty Insurance Company has the following financial ratios. 2019 2018 Loss Ratio 67.8 68.1 Expense Ratio 24.2 25.1 Net Investment Yield 3.5 4.0 a. Calculate the Combined Ratio {Loss Ratio + Expense Ratio} for each year. Combined Ratio 2019 Combined Ratio 2018 b. Calculate the Overall Profitability Ratios Overall Profitability Ratio 2019 Overall Profitability Ratio 2018 why the Overall Profitability Ratio Changed in 2019 Based on the Loss Ratio, Expense Ratio, and Net Investment Yield Trends?

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