The objective of most insurers include being profitable and remaining in business in the long term, insurance companies must carefully monitor their financial performance. Insurers must record and report financial information in a consistent manner using various financial statements which include: -
· Balance Sheet
· Income statements
Balance Sheet is a type of financial statement that shows the company’s financial position at a particular point of time and includes the company’s admitted assets, liabilities and policyholder surplus.
Income Statements is a type of financial statement that shows the company’s revenues, expenses and net income for a particular period, usually one year.
How Is the Financial Performance of Insurers Measured
