Page 127 - Reinsurance Management IC85
P. 127
Reinsurance Management
Ans:
Debit Credit
Premium 50,00,000
Premium entry 15,00,000
Premium withdrawal 15,20,000
Loss entry 7,00,000
Loss withdrawal 7,50,000
Commission (30%) 15,00,000
Foreign Taxes 10,000
Claims paid 20,00,000
Management expenses 1,15,000
(58,95,000) (72,00,000)
Profit/loss 13,05,000
a) Hence profit commission (20%) = (20 x
13,05,000) /100 = 2,61,000
b) 3 year average :
Year Loss Profit
2007 80,000
2008 25,000 13,05000
2009 12,00000
Balance
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