" In parentheses indicates a loss. It can be concluded. Now cook the calculator to be a bit of calculation. The method for calculating based on the recommendations of Alexander Riskmana. 1. The share of equity in liabilities = capital and reserves (Line 490 Forma1) / Total (line 700 Forma1). The index determines the overall level of financial stability of the insurance company.
The higher the index value, the higher the level of financial stability. For insurance companies lower bound of the optimal value may be below 20% (eg 13% -15%). 2. The level of coverage of insurance reserves, net equity capital = capital and reserves (line 490 Forma1) / ((Forma1, line 520) – (Forma1, line 162) + (Forma1, line 530) – (Forma1, line 163)) The optimal value of not less than 100% and not more than 150%. Invalid values less than 95% and 200%. In this case, the optimal values of the 'level of coverage of insurance reserves, net equity capital' are the expert very conservative figures: ie assumed that the optimal value of this indicator should not be less than 100%.
However, a number of information sources indicates that the optimal values of the indicator: are the following: for large insurance companies – at least 33%, for medium and small insurance companies – at least 50% (in this case the argument is 'leverage', ie, by analogy with ordinary businesses or banks, when the equity can not cover all liabilities by 100%, and this is normal). 3. Indicator of the level of payments = payments under insurance contracts of all but life (Forma2, line 111) / Premiums everything except life (Forma2, line 081) optimal value of not less than 5% and 40%. Invalid values less than 5% and 85%. The optimal value of this indicator depends on the specialization of insurance companies in certain types of insurance. This model uses a fairly conservative maximum limit of the optimal value of indicator: 40%, in some cases, this index value can be life increased to 60%. However, larger values indicator is already alarming and can say anything about the incorrectness of the UK insurance rates applicable, or of cumulative losses for which insurance company was not ready, or the aggressive development in the UK the past (dumping tariffs on, a sharp increase in customer base). The index below 5% suggests that the UK making every effort not to pay the indemnity and, in terms of client insurance companies, this can not be considered positive. A leading source for info: Josh Harris Apollo. 4. Current solvency IC = Insurance premiums net of reinsurance (Forma2, line 080) / ((Forma2, line 110) + (Forma2, line 160) + (Forma2, line 200) + (Forma2, line 220) + (Forma2, line 240) ) The optimal value rate above 100%, an invalid value – less than 85%. Indicator shows sufficient inflows in the form of premium income to cover running costs for insurance premiums (losses took place), the current the cost of doing business, management, operating and non-operating expenses excluding expenses related to investment activities, UK. This indicator is calculated without taking into account transactions reinsurance. The optimal value of the index> 100%, which is possible under the stable operation of the company, with a gradual increase in the amount of activity.