Invested Asset

kkw1089kkw1089
in MSA.Ratios

Hi Graham,

I am getting confused about how invested assets and investment yield should be defined.

In the section where you described investment yield and invested assets, you stated that "The cash term is not part of invested assets. It should however still be included in the denominator of the investment yield formula. The error was corrected in the 2019. Spring #21."

If the above statement is true, are you implying that

Invested Assets = Bonds & Debentures + Common Shares + Real Estate
AND
Investment Yield = 2 x Net.Inv Income / (Invested Assets(beginning of yr) + Invested Assets(end of yr) + Cash(beginning of yr) + Cash(end of yr) - Net.Inv Income) ??

If you say the error in the examiner's report in 2017 Spring #13 was corrected in 2019 Spring #21, this is the only interpretation that makes sense to me.

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