The financial statements of an insurance company are unlike those of any other organisation. Here are 5 key things to look for when confronted with the accounts of an insurance company.
Key learning objectives:
Understand the difference between technical and non-technical profit
Learn the adjustments in translating Gross Premium Written to Net Premium Earned
Examine the size of the balance sheet
Identify whether the company is adequately capitalised
Ensure that the assets are sufficiently liquid to be able to meet claims as they fall due