Questions from Financial Markets

Q: What is the investment yield on premiums earned? Why has this

What is the investment yield on premiums earned? Why has this ratio become so important to property–casualty insurers?

Q: Contrast the balance sheets of depository institutions with those of life insurance

Contrast the balance sheets of depository institutions with those of life insurance firms.

Q: How has the composition of the assets of U.S.

How has the composition of the assets of U.S. life insurance companies changed over time?

Q: What are the similarities and differences among the four basic lines of

What are the similarities and differences among the four basic lines of life insurance products?

Q: Explain how annuities represent the reverse of life insurance activities.

Explain how annuities represent the reverse of life insurance activities.

Q: How can life insurance and annuity products be used to create a

How can life insurance and annuity products be used to create a steady stream of cash disbursements and payments to avoid either the payment or receipt of a single lump sum cash amount?

Q: A commercial bank has $200 million of floating-rate loans

A commercial bank has $200 million of floating-rate loans yielding the T-bill rate plus 2 percent. These loans are financed with $200 million of fixed-rate deposits costing 9 percent. A savings associ...

Q: Calculate the following: a. Suppose a 60-year

Calculate the following: a. Suppose a 60-year-old person wants to purchase an annuity from an insurance company that would pay $15,000 per year until the end of that person’s life. The insurance compa...

Q: If an insurance company decides to offer a corporate customer a private

If an insurance company decides to offer a corporate customer a private pension fund, how would this change the balance sheet of the insurance company?

Q: How does the regulation of insurance companies compare with that of depository

How does the regulation of insurance companies compare with that of depository institutions?