Net premiums written.和 net premium earned 有什么区别？

问题如下：

Question An analyst gathers the following information (in $ millions) of an insurer and evaluates the overall efficiency of its operation:

The insurer's combined ratio is:

选项：

A.A.64%. B.B.80%. C.C.120%.

解释：

Solution

1. Incorrect because the combined ratio is incorrectly calculated as (Loss expense + Loss adjustment expense + Underwriting expense) / (Net premiums earned + Net premiums written)

   

2. Incorrect because this is the Loss and loss adjustment expense ratio for the insurer. Loss and loss adjustment expense ratio = (Loss expense + Loss adjustment expense) / Net premiums earned.

   

3. Correct because 120% is the combined ratio of the insurer.

   Combined ratio = Loss and loss adjustment expense ratio + Underwriting expense ratio.

   Loss and loss adjustment expense ratio = (Loss expense + Loss adjustment expense)/Net premiums earned.

   Underwriting expense ratio = Underwriting expense/Net premiums written.

   

Analysis of Financial Institutions

• describe key ratios and other factors to consider in analyzing an insurance company