Q18
What exactly is allocation of reinsurance premiums? How does that increase your denominator with total insurance revenue?? Doesn't that DECREASE?
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What exactly is allocation of reinsurance premiums? How does that increase your denominator with total insurance revenue?? Doesn't that DECREASE?
Comments
Allocation of reinsurance premiums are the reinsurance premiums that are attributed to that current quarter. It is supposed to increase your denominator according to the formula. I think the idea is that you want a consolidated view of the ratio of expenses to premiums for both reinsurance held and your direct contracts, which is why you add it to TIR. I'm honestly not super sure and it's just my best guess since they don't elaborate at all in the legend