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IRIS: Profitability Ratios (5,6,7,8)

myID_+ priorDate_+ record_+ WET_+ fadeFactor_

Calculate IRIS ratios 5-8 and state (y/n) whether each is within its usual range.

  current score:
0.000

Ratio Value 1 In Range? (y/n)
IRIS 5
IRIS 6
IRIS 7
IRIS 8
1 If your answer is 88.1% then enter either:
  • 88.1%
  • 88.1 (omit percent sign)
   Do not enter in the format 0.881.

IRIS 5: 2-year COR (Combined Operating Ratio)
IRIS 6: Investment Yield
IRIS 7,8: IRIS 7 & 8 are worth fewer points here because they're easier and not asked as often.
Item CY CY - 1
NWP (Net Written Premium) ---- ----
NEP (Net Earned Premium) ---- ----
NII (Net Investment Income) ---- ----
TOI (Total Other Income) ---- ----
L (Net Losses & LAE Incurred) ---- ----
Div (Dividends to Policyholders) ---- ----
X (Other U/W Expenses) ---- ----
Cash (Cash & Invested Assets) ---- ----
InvInc (Inv. Income Due & Accrued) ---- ----
B (Borrowed Money) ---- ----
Surplus ---- ----
Surplus Paid In ---- ----


IRIS 5

= LR + ER – IIR      (Loss Ratio + Expense Ratio – Investment Income Ratio) or (Combined Ratio)    thx MH!

where
LR
= [ (Lcurr + Lprior) + ( Divcurr + Divprior) ] / (NEPcurr + NEPprior)

ER
= [ (Xcurr + Xprior) ( TOIcurr + TOIprior) ] / (NWPcurr + NWPprior)

IIR
= (NIIcurr + NIIprior) / (NEPcurr + NEPprior)

IRIS 6

= 2 x NII / [ (Cashcurr + Cashprior) + (InvInccurr + InvIncprior) (Bcurr + Bprior) NII ]

IRIS 7

= change(surplus) / (prior year surplus)

IRIS 8

= [ change(surplus) (surplus paid in) ] / (prior year surplus)

Usual Range


IRIS 5
< 100%

IRIS 6
(2.0%, 5.5%)

IRIS 7
(-10%, 50%)

IRIS 8
(-10%, 25%)

Solution:
Ratio Value In Range?
IRIS 5
IRIS 6
IRIS 7
IRIS 8
LR 0
ER 0
IIR 0
IRIS 6 denominator 0