No, "other revenues" is part of regular net income. The definitive way to know this is to look at page 20.30, "Statement of Income" from the quarterly return. (This is called Annual Return I in the syllabus.)
You can download this from the CAS website. Here is a link to the wiki article related to this syllabus reading:
Sorry, I have a question here, I can get part a and part b correct with NEP=220K, Net Incurred Claim with Adjustment Expense=145K, and Operating Expense=58K.
Then I calculate the Pre-Tax Income=220K-145K-58K+14K+4.5K+0.5K+0.8K=36800, whereas the solution says the pre-tax income is 35,800. Just want to know did I miss anything here? I am thinking what can cause the 1K difference here?
In your calculation, you have (14K + 4.5K + 0.5K) = 19K for investment income, but the correct value is 18K. You should subtract 0.5K, not add it, because it is an expense.
Comments
No, "other revenues" is part of regular net income. The definitive way to know this is to look at page 20.30, "Statement of Income" from the quarterly return. (This is called Annual Return I in the syllabus.)
You can download this from the CAS website. Here is a link to the wiki article related to this syllabus reading:
If you download the quarterly return from the CAS website and look at page 20.30 you'll see that the 3 main categories of income are:
You add these up then subtract income taxes to the final value for "Net Income".
Thank you Graham!
Hi,
Sorry, I have a question here, I can get part a and part b correct with NEP=220K, Net Incurred Claim with Adjustment Expense=145K, and Operating Expense=58K.
Then I calculate the Pre-Tax Income=220K-145K-58K+14K+4.5K+0.5K+0.8K=36800, whereas the solution says the pre-tax income is 35,800. Just want to know did I miss anything here? I am thinking what can cause the 1K difference here?
In your calculation, you have (14K + 4.5K + 0.5K) = 19K for investment income, but the correct value is 18K. You should subtract 0.5K, not add it, because it is an expense.