The investment portfolio consists of 30% cash, 20% bonds and 50% equity for a total of 100. The debt to equity ratio is 2:1 with liabilities at 33 and equity at 67 for total liabilities and equity of 100. The net investment yield was 6.60% which equaled the net profit and the return on equity was 20%.
Original Description:
Understanding the economics of Insurance Business, through its balance sheet.
The investment portfolio consists of 30% cash, 20% bonds and 50% equity for a total of 100. The debt to equity ratio is 2:1 with liabilities at 33 and equity at 67 for total liabilities and equity of 100. The net investment yield was 6.60% which equaled the net profit and the return on equity was 20%.
The investment portfolio consists of 30% cash, 20% bonds and 50% equity for a total of 100. The debt to equity ratio is 2:1 with liabilities at 33 and equity at 67 for total liabilities and equity of 100. The net investment yield was 6.60% which equaled the net profit and the return on equity was 20%.