insurance finance department strategies

What is working capital

funds available to support operations

What is capital structure

mix of long term debt and equity, assesses resources needed to meet long term obligations

What is net income equation

revenue minus expenses

What is unrealized capital gains

profit not yet earned on a held asset

What are the liabilities an insurer faces

unearned premium reserves, loss reserves, loss adjustment expense reserves

What are the unearned premium reserves

represents amount of premiums received from policyholders that are not yet earned

What are the loss reserves

estimate of amount of money insurer expects to pay for future losses

What are the loss adjustment expense reserves

estimates of future expense that an insurer expects to incur

What is sell and leaseback

when an insurer sells an asset and leases it back from the new owner to increase their capital

What is loss portfolio transfer

when an insurer sells policies to a reinsurer and takes over the loss reserves associated with those policies