Total Profit (Loss)

zachboaz

For the Main Formula:

Total Profit (Loss) = (Pre-tax profit excluding InvGain) + InvGain(Insurance Transactions) + InvGain(Capital & Surplus)

Is the left side of this equation really 'Total Pre-tax Profit (Loss)'? This is the numerator of the ratio they are asking us to find in question 13 from Spring 2015, correct?

Based on Fall 2012 #17a, it seems as though the 'Pre-tax profit excluding InvGain' term is really just UW income, is this incorrect?

Jaarndt

I believe the reason this looks different in these two problems is that the other income in the 2012 problem is zero. In the 2015 problem we have an amount for other income and that is included in the pre tax profit excluding invGain. So basically (pre tax profit excluding invGain) = (UW income) + (other income)

zachboaz

Thank you for the clarification! So, is (pre-tax profit excluding InvGain) + InvGain(Insurance Transactions) + InvGain(Capital & Surplus) = Total pre-tax Profit (Loss)

Really, what I am asking is: In the Main Formula is the Total Profit (Loss) pre-tax? The first term on the right side of the equation being pre-tax but not having "pre-tax" on the left side of the equation just confuses me.

graham

I have edited the formula to make it clearer. Thx.

• https://battleacts6us.ca/wiki6us/Odomirok.18-IEE#Total_Profit_.28Loss.29

nj2374

Does pre-tax mean pre federal and foreign income taxes incurred?

Staff - AC

Yes, correct.