Page 290 - Reinsurance Management IC85
P. 290
Reinsurance Management
Average Profit 2755000 = Rs. 918333 (apx.)
3 25% (10% of 850000)
Rs. 212500 - (A)
.: 25% of 10% of Premium = 918333
850000
= 68333
23916.55 (B)
Profit = (A) + (B)
236416.55
(-) 10% of Premium =
.: 35% of 68333 =
.: Total Profit Commission =
=
Outgo Income
Item of Treaty Result
for 2011 Debit (Rs.) Credit (Rs.)
Premium 85,00,000
Portfolio Premium Entry 18,00,000
Commission (30% on Premium) 25,50,000
Claim Paid 65,00,000
Portfolio Premium withdrawal 8,00,000
Portfolio Loss withdrawal 6,00,000
Management Expenses (7%) 5,95,000
1,10,45,000 1,46,00,000
Profit / Loss 35,55,000
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