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First Exam Calculations B

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  • pg 1
									                    Fin 431 First Exam B Calculations
#13
ALR                                   0.76
ELR                                  0.825
Indicated Change                   -0.0788

#14
Loss Frequency                       0.05
Loss Severity                       3,500
Fixed Expenses                         60
Variable Expenses                    0.18
Gross Premium                      286.59

#16
      Unearned premium reserve 12/31/06                 56,700,000
      Loss reserve 12/31/06                             75,800,000
      Written premium during 2007                       72,900,000
      Paid losses during 2007                           48,200,000
      Unearned premium reserve 12/31/07                 61,800,000
      Loss reserve 12/31/07                             78,100,000

      Incurred Losses                                   50,500,000
      Earned Premium                                    67,800,000
      Calendar Year Loss Ratio                                 0.745


      #17
      Written Premium                                            425
      Earned Premium                                             406
      Incurred Losses                                            258
      Loss Adjustment Expenses                                       57
      Underwriting Expenses                                      108
      Net Investment Income                                          43
      Realized Capital Gains                                         8
      Unrealized Capital Gains                                       2


      Loss and LAE Ratio                                       0.776
      Expense Ratio                                            0.254
      Combined Ratio                                           1.030
      Investment Income Ratio                                  0.131
      Operating Ratio                                          0.899
                                                 Cumulative Loss Payments
                                                       (000 omitted)
                                                    Development Months
         Accident Year                 12          24             36                 48
              2004                   12,500      18,700          22,400            23,500
              2005                   14,200      21,500          25,300
              2006                   16,800      25,400
              2007                   18,100

#18
             Year                     12-24       24-36           36-48             48-60
             2004                     1.496       1.198           1.049
             2005                     1.514       1.177
             2006                     1.512
            Average                   1.507       1.187           1.049             1.000
          Age-Ultimate                1.878       1.246           1.049             1.000

#19
         Accident Year             Paid to Date Age-to-Ult Ultimate Loss          Loss Reserve
                            2004         23,500           1        23500                   0
                            2005         25,300      1.049         26540               1,240
                            2006         25,400      1.246         31648               6,248
                            2007         18,100      1.878         33992              15,892
                                         92,300                   115,680             23,380
#20
Bornhuetter-Ferguson Method
Earned Premium                                                       49,450,000
Expected Loss Ratio                                                        0.78
% of Losses to be Paid in Future                                    0.46738858
Total Expected Losses                                               38,571,000
Estimated Loss Reserve                                              18,027,645

								
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