GI Ratios Flashcards
1
Q
What are the ratios in GI concerned with
A
Ensuring there is:
- Solvency
- Liquidity
- Capital adequacy
- Profitability and
- Claims
2
Q
What is liquidity?
A
Liquidity is a company’s ability to turn it’s assets into cash in order to pay it’s liabilities when it is due
3
Q
What is the solvency ratio?
A
Solvency Ratio:
_________Net assets /__________\_
Earned premium + Net of reninurance
Solvency Coverage ratio:
Surplus regulatory capital /
Regulatory cpaital available
