1. A Primer on Non-Life Insurance Ratios Craig Thorburn Cthorburn@worldbank.org

2. A Primer on Non-Life Insurance Ratios Solvency and Capital

3. Premiums and Capital Kenney Rules, Leverage, Capital as a percentage of premium

4. Provisions and Capital A response to the fact that companies need capital until all claims are finalized and paid.

5. Solvency Margin Requirements A basic index type solvency margin Alternative approaches may use a different formula

6. Coverage Ratio Checks measure of actual solvency against a standard base. If required solvency is the legal requirement then the ratio should be >100%, preferably with a buffer.

7. Quality of Capital Capital can come in different forms from pure equity to less permanent subordinated debt, for example. Some reinsurance contracts may supply a form of capital. Where there is more than one form then it is useful to separate out the components and compare “core” capital as well as “total capital”.

8. A Primer on Non-Life Insurance Ratios Sixth Break