Odomirok.12-5yr
The Five-Year Historical Data exhibit summarizes 5 years of key financial statistics from past Annual Statements. (Most other annual statement exhibits show only 1 or 2 years of data.)
Study Tips
Study the examiner's report solution to (2018.Spring #13) very carefully. It's a good question. Information from Odomirok.13 may also be useful here. It's valuable to spend up to 2 hours on this chapter.
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Based on past exams, the main things you need to know (in rough order of importance) are:
- how to use general knowledge to interpret information on the 5-year historical exhibit
reference part (a) part (b) part (c) part (d) E (2018.Spring #13) financial health
- area of concern #1financial health
- area of concern #2financial health
- area of concern #3financial health
- area of concern #4
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In Plain English!
The 2018.Spring exam question doesn't require you to have any special knowledge concerning the 5-Year Historical Data Exhibit. This question is testing a broader understanding of how to use financial statement data to understand a company.
The syllabus provides online examples of annual statements for Travelers and Liberty Mutual, but the Liberty Mutual example didn't include this exhibit. Check the Travelers annual statement for a real-life example of the 5-Year Historical Data Exhibit.
The way I think of this exhibit is that it pulls together information from many other exhibits and shows you all in 1 place, plus it shows you 5 years. It's a very useful exhibit to get an overview of the company.
Here are some examples of the types of data that are shown:
- premiums - gross & net
- balance sheet information - assets, liabilities...
- income statement information - U/W gain, investment gain,...
- operating ratios
- RBC - total capital & ACL (Authorized Control Level Capital)
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