Insurer Financial Performance

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Level: Beginner

Why you need this course:
After completing this course, you’ll have a basic understanding of how an insurer’s financial condition is measured, including how ratios and their changes over time can reflect improvements or problems in an insurer’s results.

Upon successful completion of this course, you should be able to:

  • Describe the sources of income for a property-casualty insurer.
  • Describe the types of expenses that a property-casualty insurer incurs.
  • Explain how an insurer’s gain or loss from operations is determined.
  • Distinguish between the admitted and nonadmitted assets of insurers.
  • Describe the three types of liabilities found on the financial statements of insurers.
  • Describe the typical items found on the balance sheet of a property-casualty insurer.
  • Describe the typical items found on the income statement of a property-casualty insurer.
  • Given an insurer’s financial statements, calculate and explain the significance of the following profitability ratios:
    • Loss ratio
    • Expense ratio
    • Dividend ratio
    • Combined ratio
    • Investment income ratio
    • Overall operating ratio
  • Given an insurer’s financial statements, calculate and explain the significance of an insurer’s capacity ratio.

Cost: $20 per Professional Development Hour (PDH). Information on PDHs provided can be found here.

Insurer Financial Performance Topics Include:

  • Sources of income for a property-casualty insurer
  • Types of expenses that a property-casualty insurer incurs
  • How an insurer’s gain or loss from operations is determined
  • Differences between the admitted and nonadmitted assets of insurers
  • The three types of liabilities found on the financial statements of insurers
  • Typical items found on the balance sheet of a property-casualty insurer
  • Typical items found on the income statement of a property-casualty insurer
  • Calculating profitability ratios, including the loss ratio and expense ratio
  • The significance of an insurer’s capacity ratio

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Phone: (800) 644-2101

Customer Service hours are Monday through Friday, 8:00 a.m. to 6:00 p.m. eastern time.

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