Financial ratios not the whole story

The ratio shows how effectively and efficiently the company is using its assets to generate earnings.

Financial ratios not the whole story

Both the gross and net loss estimates on the Catastrophes represent our best estimate of losses based upon information currently available.

Financial Statement Analysis | Wyzant Resources

Our estimate for these losses is based on claims received to date and detailed policy level reviews, industry loss estimates, output from both industry and proprietary models as well as a review of in-force contracts.

The estimate is dependent on broad assumptions about coverage, liability and reinsurance. Due to these factors, we believe our gross and net loss estimates on the Catastrophes have a high degree of volatility.

Financial ratios not the whole story

While we believe our reserves for the Catastrophes as of December 31, are adequate, we continue to closely monitor reported claims and will adjust our estimates of gross and net losses as new information becomes available.

The net losses for the Catastrophes were within our risk tolerance for events of this magnitude.

Liquidity Measurement Ratios: Current Ratio

The increase in the consolidated combined ratio was driven by the impact of the Catastrophes. Excluding the impact of underwriting losses related to the Catastrophes and Catastrophes described above, the combined ratio increased due to a higher current accident year loss ratio and less favorable prior accident year loss ratio, partially offset by a lower expense ratio.

The increase in the current accident year loss ratio is primarily due to higher current accident year loss ratios in our International Insurance and Reinsurance segments in compared to The decrease in the expense ratio in compared to is primarily driven by a favorable impact from higher earned premium volume and a decrease in profit sharing expenses in compared to These decreases in the expense ratio were partially offset by an unfavorable impact from changes in the mix of business in our International Insurance and Reinsurance segments.

Although favorable development on prior years' loss reserves remained consistent in compared todevelopment on prior years' loss reserves had a less favorable impact on the combined ratio in due to higher earned premium volume in compared to Infavorable development on prior years' loss reserves in our U.

There was no significant development on these lines in Insurance Segment The combined ratio for the U. The increase in the combined ratio was due to the impact of the Catastrophes, partially offset by more favorable development of prior years' loss reserves.

There was no significant development on these product lines in Also contributing to the increase in favorable development on prior years' loss reserves was favorable development on our specialty programs business in compared to slightly adverse development on this business in and more favorable development on our workers' compensation product line in compared to These increases in favorable development were partially offset by less favorable development on our property product lines in compared to The favorable development on prior years' loss reserves in was most significant on our general liability, professional liability and workers' compensation product lines as well as our personal lines business.

Infavorable development on prior years' loss reserves was most significant on our general liability, workers' compensation, property and non-medical professional liability product lines. The increase in the combined ratio was driven by the impact of the Catastrophes, partially offset by a lower expense ratio and more favorable development of prior years' loss reserves.

Excluding the impact of underwriting losses related to the Catastrophes and Catastrophes described above, the current accident year loss ratio increased, primarily due to higher attritional losses on our property product lines in compared to The increase in favorable development in compared to was driven by more favorable development on our general liability product lines in In both andfavorable development on prior years' loss reserves occurred across several product lines, but was most significant on our professional liability, general liability and marine and energy product lines.

The decrease in the expense ratio was attributable to the write off of previously capitalized software development costs in and lower profit sharing in compared to These decreases were partially offset by an unfavorable impact from changes in the mix of business in this segment, most notably as the result of higher retentions on products with higher net commission rates in compared to The increase in the combined ratio was driven by the impact of the Catastrophes and adverse development on prior years' loss reserves attributable to the decrease in the Ogden rate in FINANCIAL MODELING & VALUATION CUSTOMIZED TRAINING PROGRAMS DETAILED COURSE DESCRIPTIONS +1 () +1 () (fax) [email protected]

Apr 13,  · Furthermore, each firms is unique, and ratios does not tell the whole story. Hope this helps. Only had a few lectures in finance, so it may not be as helpful as my other rutadeltambor.com: Resolved.

Financial Ratios Not The Whole Story. In finance Ratio analysis is carried out to judge the liquidity of the organization.

It helps the analysts to find if a company is capable enough to pay its liabilities. Moreover it also helps to show the operating efficiency and internal return of an organization. Financial planners listed reflect FPA CFP® Professional members who have created a profile.

If a CFP® professional is not listed, this is not reflective of membership or certification status. Financial planning software, personal finance software, and investment software for consumers, investors, financial advisers and investment managers. The posts on this website about cash value insurance continue to attract comments (mostly from those who sell it) like a knight in shining armor on a summit in a thunderstorm attracts lightning.

Months or even years after I write a post the comments continue to grow into the hundreds.

Financial ratios not the whole story

In a recent comment, one agent stated that whole life insurance was a lot like a Roth IRA.

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