CCIR.INSTRUCTIONS Flashcards
Formules for Equity @X (3 methods)
E(X) = E(X-1) + NI(X) + OCI(X) - dividends
E(X) = A(X) - L(X)
E(X) = PHE(X) + SHE(X) + nci(X)
Components of Shareholder’s Equity (SHE) (7)
Common Shares
Preferred Shares
Contributed Surplus
Other Capital
Retained Earnings
Nuclear and Other Reserves
AOCI
Formula for Net Income
Net Income = (Insurance Service Result)
+ (Net Investment Result)
+ (Other Income & Expenses)
- Taxes
+ Discontinued Operations
Formula for Insurance Service Result
Insurance Service Result = (Total Insurance Revenue)
+ (Net Expenses from reinsurance contracts held)
- (insurance service expenses)
Formula Investment Return
IR = (Net investment income) - (Provision for credit losses)
Formula Net investment income (NII)
NII = Realized gains on Sale
+ Fair Value Gains (Losses)
+ Dividends
+ Rental income
+ Other investment income from derivative assets
+ Gross investment income
- Investment expenses
- Investment taxes
Formula Net expense from reinsurance contracts held (NRE)
NRE = (Allocation of reinsurance premiums)
+ (Amounts recoverable from reinsurers for Incurred claims)
+ (Effect of changes in non-performance risk of reinsurers)
Formula Insurance Service Expense (ISE) (4)
ISE = (Incurred claims and other insurance service expenses)
+ (Amortization of insurance acquisition cash flows)
+ (Losses and reversal of losses on onerous contracts)
+ (Adjustment to liabilities for incurred claims)
Formula for Adjusted Equity
Adjusted Equity = Total Equity - nci - catastrophe reserves - reinsurance held with unregistered reinsurers
Formula for Investment Yield
Yield = [2 x (IR + PI) x 100]/[Vb + Ve - IR - PI]
IR: Investment Return
PI: Share of net income (loss) of equity accounted investees
V: cash et cash equivalents, accrued investment income, and investments at the beginning and end of the year
Ve = current year
vb = prior year
Formula Return on Equity
[2 x NI x 100]/[Eb + Ee]
NI: Net income (loss) for the year
E: total equity at the beginning and end of the year
Formula Agents and Brokers Balances and Amounts due from Subsidiaries and Associates as a Percentage of Adjusted Equity
= [(Receivables - unaffiliated agents and brokers) + (Receivables - subsidiaries, associates and joint ventures)]/(Adjusted Equity)
Formula Claims Development as a Percentage of Adjusted Equity
= (Amount: excess or (deficiency))/(Adjusted Equity)
Formula Number of direct claims reported during the current fiscal year
= (number of direct claims incurred and reported during the current fiscal year) + (number of direct claims incurred in previous year and reported during the current fiscal year)
= (incurred CY, reported CY) + (incurred PY, reported CY)
Formula Amount: excess of (deficiency)
= (Undiscounted Liabilities for incurred claims - prior year end) - (Net amount paid during the year for claims and AE of prior years) - (Undiscounted Liabilited for incurred claims for Prior years)
