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

2. A Primer on Non-Life Insurance Ratios Assets

3. Asset Mix Examine the percentage of assets by type. Consider appropriateness compared to the type of business written, especially short tail and long tail products, company in runoff etc. Are assets sufficiently liquid and marketable? Is there a match between the types of assets and the types of liabilities? Is there a currency mismatch? Is it increasing or decreasing?

4. Investment and non investment Assets A company is more secure if it has adequate financial assets. Non investment type assets, for example equipment, office furniture, amounts owing from creditors, are less available to meet policyholder obligations in times of difficulty.

5. Inadmissible Assets Inadmissible assets will be defined in the jurisdiction.

6. Liquidity Current Ratio –“Current assets” divided by “current liabilities”. Quick Ratio –similar to the current ratio but excludes the value of inventory or stocks in the current asset calculation. IRIS Number 8

7. A Primer on Non-Life Insurance Ratios Fifth Break