MSA ratios Flashcards
1
Q
give 4 examples of company characteristics not captured in MSA ratios
A
- subjective analysis of market position
- quality of management
- quality of reinsurance
- prospects for growth and innovation
2
Q
what does diversification score measure?
A
- measures how closely the insurer tracks the overall Canadian market in terms of geographic and LoB spread
- if diversification score >65, company is highly diversified
3
Q
give examples of an insurer with a low / high diversification score
A
low: niche insurers
high: national, multi line writers
4
Q
compare the MSA ratios, ROE ROR
A
ROE is return to shareholder’s per unit of capital
ROR is income relative to revenue generating capacity
5
Q
A
