Insurance Principles Series
Insurance Financial Performance Course
Why you need this course:
Insurers must pay careful attention to their financial performance, in terms of both profitability and solvency. Standard sources of income and expenses, as well as standard ratios, create a uniform method of tracking financial performance over time and comparing the results of one insurer to another. To fully understand how the insurance industry operates, it is important to learn the ways in which an insurer’s financial condition is measured, including how ratios and their changes over time can reflect improvements or problems in an insurer’s results.
Upon successful completion of all nine modules in this course, you should be able to:
- Describe the sources of income for a property-casualty insurer.
- Describe the types of expenses that a property-casualty insurer incurs.
- Explain how an insurer’s gain or loss from operations is determined.
- Distinguish between the admitted and nonadmitted assets of insurers.
- Describe the three types of liabilities found on the financial statements of insurers.
- Describe the typical items found on the balance sheet of a property-casualty insurer.
- Describe the typical items found on the income statement of a property-casualty insurer.
- Given an insurer’s financial statements, calculate and explain the significance of the following profitability ratios:
- Loss ratio
- Expense ratio
- Dividend ratio
- Combined ratio
- Investment income ratio
- Overall operating ratio
- Given an insurer’s financial statements, calculate and explain the significance of an insurer’s capacity ratio.
We recommend that you study the modules in the order presented in the course.
Cost: $48 per course (2 Professional Development Hours @ $24 per hour)
Contact Customer Service.