CH:34 Reporting results

Question 1

What reports could accompany accounts that provide more information?

Answer 1

• performance against key objectives
• investment strategy and performance
• progress against long- and short-term strategic goals
• attitude to risk, key risks faced, risk management and mitigation
• governance arrangements, including independence of the Board

Question 2

What ratios can be used to analyse insurance company accounts?

Answer 2

• expense ratio (incurred expenses to premiums)
• commision ratio (commission to premium)
• operating ratio (particularly for short-term business) (total incurred claims and expenses to premiums)
• ratio of outward reinsurance premiums to gross premium income

Question 3

What information should benefit scheme beneficiaries be given about the scheme?

Answer 3

• benefit entitlements
• contribution obligations
• expense charges
• investment strategy
• risks involved
• treatment of entitlements in the event of insolvency

Question 4

What disclosures may be needed in the accounts of benefit schemes

Answer 4

• assumptions
• actuarial method
• value of liabilities accruing over the year
• increase in the past service liabilities over the year
• investment return achieved on the assets over the year
• surplus or deficit and the change in this figure over the year
• benefit cost over the year in respect of any directors
• membership movements