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This page provides definitions of line items and ratios specific to the Insurance model. See the Industrial Model for line items common to all models.
Income Statement Items
Total Premiums: For insurance companies, total premium income (where available) is shown rather than Turnover.
Total Income:PREMIUMS less RE-INSURANCE COST less INCREASE IN UNEARNED PREMIUM PROVISION plus INCOME FROM INVESTMENTS plus INTEREST RECEIVED less OUTSIDE SHAREHOLDERS’ INTEREST.
Total Outgo:
COMMISSIONS PAID plus ADMINISTRATION COSTS plus INTEREST PAID plus POLICY PAYOUTS
Inc Over Outgo: Excess income over outgo
“Net profit” specifically for life assurance companies.
U/writ Splus: Underwriting Surplus
“Net profit” specifically for short term insurance companies.
NetTaxedSplus: Net taxed surplus
Insurance equivalent of income after tax. This is taken before preference dividends and extraordinary items.
Insurance Model Ratios
Solvency Mgn: Solvency Margin
[(TOTAL SHAREHOLDERS’ INTEREST) / (NET PREMIUM INCOME)] * 100 * (NUMBER OF MONTHS/12)
This gives an indication of how adequate shareholders funds are to cover expected claims (related directly to premium income).
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