Our team has to submit a monthly premium and loss forecast to ABC Group head office and you

have been requ

only the figures.

Task: In the Premium and Loss Statement (or Income Statement) below, identify all cells or areas where you su
comments if necessary)
Suggested Time: 10min

ABC Group Jan Feb Mar Apr Aug

Total Written Premium 96,202,261 97,054,180 123,752,985 137,693,519 153,237,970

Total Earned Premium 120,826,472 122,229,943 122,246,394 124,157,353 124,907,138
Total Loss 98,971,081 73,644,383 65,362,988 88,901,314 84,952,137

Claim Expense 7,741,444 6,621,457 7,665,865 7,148,881 7,559,045

Operating Expense 30,697,171 30,177,774 31,558,133 33,117,932 33,701,257

Underwriting Income (16,583,224) 11,786,329 17,659,410 (5,010,774) (1,305,301)

Combined Ratio 113.7% 90.4% 85.6% 104.0% 101.0%

Total Loss Ratio 81.9% 60.3% 53.5% 71.6% 68.0%
Total Expense Ratio 31.8% 30.1% 32.1% 32.4% 33.0%

Note: All ratios are based on Total Earned Premium

Draft (Ignore)
ABC Group Jan Feb Mar Apr Aug

Total Written Premium 96,202,261 97,054,180 123,752,985 137,693,519 153,237,970

Total Earned Premium 120,826,472 122,229,943 122,246,394 124,157,353 124,907,138
Total Loss 98,971,081 73,644,383 65,362,988 88,901,314 84,952,137

Claim Expense 7,741,444 6,621,457 7,665,865 7,148,881 7,559,045

Operating Expense 30,697,171 30,177,774 31,558,133 33,117,932 33,701,257

Underwriting Income (16,583,224) 11,786,329 17,659,410 (5,010,774) (1,305,301)

C28-C29-C31-C32
Combined Ratio 113.7% 90.4% 85.6% 104.0% 101.0%
(C29+C31+C32)/C28
Total Loss Ratio 81.9% 60.3% 53.5% 71.6% 68.0%
C29/C28
Total Expense Ratio 31.8% 30.1% 32.1% 32.4% 33.0%
(C31+C32)/C28
and you have been requested to review the file before sending. Unfortunately the file does not include the formulas but

or areas where you suspect that a correction might be required. (Highlight cells using a different colour and insert

Jun Jul May Sep Oct Nov Dec

163,439,089 151,788,582 155,569,437 145,906,458 149,823,366 143,365,644 117,278,648

127,207,673 127,521,373 128,943,581 130,422,125 132,306,122 133,586,181 136,725,514
92,280,605 81,884,805 68,787,382 76,422,692 82,189,466 76,376,827 84,892,525

7,787,914 6,941,585 7,198,392 8,164,418 7,537,614 7,442,540 6,558,891

32,453,646 32,641,295 31,827,793 34,120,612 35,525,865 35,650,134 39,055,787

(5,314,493) 6,053,688 21,130,014 11,714,403 7,053,178 14,116,681 6,218,311

104.2% 89.8% 83.6% 91.0% 94.7% 89.4% 95.5%

72.5% 64.2% 53.3% 58.6% 62.1% 57.2% 62.1%
31.6% 25.6% 30.3% 32.4% 32.5% 32.3% 33.4%

Jun Jul May Sep Oct Nov Dec

163,439,089 151,788,582 155,569,437 145,906,458 149,823,366 143,365,644 117,278,648

127,207,673 127,521,373 128,943,581 130,422,125 132,306,122 133,586,181 136,725,514
92,280,605 81,884,805 68,787,382 76,422,692 82,189,466 76,376,827 84,892,525

7,787,914 6,941,585 7,198,392 8,164,418 7,537,614 7,442,540 6,558,891

32,453,646 32,641,295 31,827,793 34,120,612 35,525,865 35,650,134 39,055,787

(5,314,493) 6,053,688 21,130,014 11,714,403 7,053,178 14,116,681 6,218,311

104.2% 95.3% 83.6% 91.0% 94.7% 89.4% 95.5%

72.5% 64.2% 53.3% 58.6% 62.1% 57.2% 62.1%

31.6% 31.0% 30.3% 32.4% 32.5% 32.3% 33.4%

clude the formulas but

colour and insert

2018 Total

1,635,112,139
1,531,079,870
974,666,205

88,368,045
400,527,398

67,518,222

95.6%
63.7%
31.9%

2018 Total

1,635,112,139
1,531,079,870
974,666,205
-
88,368,045
400,527,398
-
67,518,222

95.6%

63.7%

31.9%
Suggested Time: 15min

Question 1: Using the data from the "Sales Data" tab, fill out the chart below as much as possible (blank
cells are expected)

SALES Ontario Quebec Alberta New Brunswick Nova Scotia

Jan 13,170 2,975 1,157 -
Feb 11,803 2,551 4,149 937 519
Mar 12,611 3,649 4,838 936 728
Apr 12,001 3,383 5,171 967 827
May 13,605 4,167 1,143 -
Jun 13,836 3,870 5,232 1,070 864
Jul 13,276 3,760 5,266 1,020 788
Aug 13,482 3,969 1,096 720
Sep 4,332 4,635 1,034 782
Oct 12,482 4,884 4,324 782
Nov 12,279 5,185 4,585 512
Dec 9,655 4,908 3,820 486
Year End 138,200 47,633 42,020 9,359 8,296

Question 2: How many sales were there in Ontario for the month of September?
Answer 12,724

Question 3: If total Alberta is 20% of total Canada sales, and New Brunswick sells 30% of their total sales in the
last quarter of the year. How much did New Brunswicks sell in the 4th quarter as a portion of the
total Canada year end?

Answer 275279*20%*30%-sum(F7:F15) 7,158.03

Question 4: Due to a new initiative, Alberta sales will go up by 15%. What will be the total Canada year end
number of sales be next year?
Answer 42020*1.15+( 281,582
275279-
Question 5: 42020)
In a pie chart, show the distribution of sales for Canada by province
Answer
Ontario Quebec Alberta New Brunswick
138,200 47,633 42,020 9,359

Sales for Canada by Province

Ontario Quebec Alberta
New Brunswick Nova Scotia
s much as possible (blank

Canada
21,717
19,959
22,762
22,449
-
25,081
24,210
23,915
23,507
-
-
-
275,279

% of their total sales in the

uarter as a portion of the

total Canada year end

Nova Scotia
8,296
Data Type Sales

Region
Data Ontario Quebec Alberta New Brunswick Nova Scotia Canada
Sum of Jan 1317000.0% ### 115700.0% 2171700.0%
Sum of Feb 1180300.0% ### ### 93700.0% 51900.0% 1995900.0%
Sum of Mar 1261142.4% ### ### 93565.3% 72800.0% 2276207.7%
Sum of Apr 1200092.6% ### ### 96711.5% 82700.0% 2244904.1%
Sum of May 1360531.8% ### 114265.3%
Sum of Jun 1383584.4% ### ### 106969.5% 86400.0% 2508053.9%
Sum of Jul 1327557.3% ### ### 102047.0% 78800.0% 2421004.3%
Sum of Aug 1348168.5% ### 109552.7% 72000.0% 2391521.3%
Sum of Sep 1272396.5% ### ### 103360.1% 78200.0% 2350656.6%
Sum of Oct 1248248.8% ### ### 78200.0%
Sum of Nov 1227912.8% ### ### 51200.0%
Sum of Dec 965481.7% ### ### 48600.0%
Sum of Year End 15092416.9% ### 829600.0% 27527905.3%
Region Data Type Jan Feb Mar
Ontario Quotes 28,965 25,035 20,356
Ontario Average Premium 1,307 1,297 1,280
Alberta Quotes 10,562 9,865 11,654
Quebec Quotes 6,852 6,780 6,657
Quebec Loss Ratio 73.5% 76.4% 63.9%
New Brunswick Sales 1,157 937 936
New Brunswick Quotes 1,865 1,913 2,926
Canada Quotes 49,578 45,092 43,515
Alberta Sales 4,149 4,838
Nova Scotia Average Premium 963 996 992
New Brunswick Loss Ratio 73.5% 76.4% 63.9%
Quebec Sales 2,975 2,551 3,649
Alberta Loss Ratio 69.8% 69.5% 70.6%
Nova Scotia Loss Ratio 83.9% 58.6% 51.8%
Nova Scotia Sales 519 728
Canada Sales 21,717 19,959 22,762
Alberta Average Premium 851 888 865
Ontario Sales 13,170 11,803 12,611
Canada Loss Ratio 82.6% 85.0% 86.3%
Quebec Average Premium 1,080 1,106 1,124
Nova Scotia Quotes 1,334 1,499 1,922
New Brunswick Average Premium 659 718 739
Canada Average Premium 1,150 1,152 1,135
Ontario Loss Ratio 69.1% 68.4% 74.0%
Apr May Jun Jul Aug Sep Oct Nov Dec
29,364 30,156 28,564 28,735 27,985 26,451 29,536 26,543 25,321
1,269 1,277 1,304 1,314 1,336 1,342 1,330 1,330 1,316
11,065 10,956 9,996 9,668 12,065 11,364 10,564 11,036 9,084
6,894 7,085 6,894 7,065 6,954 6,987 7,153 6,805 6,798
58.1% 58.0% 74.4% 65.7% 77.5% 48.5% 68.9% 42.5% 73.7%
967 1,143 1,070 1,020 1,096 1,034
2,817 3,038 3,243 2,765 2,946 3,222 3,378 2,959 2,356
51,953 53,134 50,811 50,543 51,849 50,037 52,595 48,974 44,959
5,171 5,232 5,266 4,635 4,324 4,585 3,820
951 953 970 993 996 1,020 1,028 1,023 1,047
58.1% 58.0% 74.4% 65.7% 77.5% 48.5% 68.9% 42.5% 73.7%
3,383 4,167 3,870 3,760 3,969 4,332 4,884 5,185 4,908
70.1% 84.0% 68.6% 55.0% 46.9% 27.5% 80.4% 52.7% 22.6%
72.7% 67.9% 76.8% 64.8% 40.8% 61.0% 63.2% 48.4% 56.1%
827 864 788 720 782 782 512 486
22,449 25,081 24,210 23,915 23,507
833 824 831 859 861 826 819 857 889
12,001 13,605 13,836 13,276 13,482 12,724 12,482 12,279 9,655
83.9% 84.2% 87.1% 86.5% 86.9% 83.0% 84.7% 86.9% 83.0%
1,125 1,156 1,293 1,191 1,194 1,191 1,174 1,162 1,185
1,813 1,899 2,114 2,310 1,899 2,013 1,964 1,631 1,400
721 728 757 755 779 793 746 768 818
1,109 1,125 1,164 1,160 1,185 1,178 1,165 1,170 1,173
66.1% 69.0% 86.2% 73.0% 63.7% 77.9% 70.9% 34.7% 48.1%
Year End
327,011
1,305
127,879
82,924
71.1%

33,428
593,040

1,005
75.3%
47,633
69.8%
67.9%
8,296
275,279
875
150,924
86.5%
1,182
21,798
750
1,165
65.4%
Suggested Time: 10min

Automobile Frequencies
0.6

0.5

0.4
Gross Frequency

0.3

0.2

0.1

0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2013 Plan YTD 2013 Actuals YTD

Jan Feb Mar Apr May Jun Jul Aug Sep Oct
2013 Plan YTD 0.42 0.42 0.44 0.48 0.47 0.47 0.49 0.49 0.48 0.48
2013 Actuals YTD 0.29 0.22 0.27 0.32 0.33 0.37 0.40 0.43 0.43
0.13 0.2 0.17 0.16 0.14 0.1 0.09 0.06 0.05
Frequency is defined as a ratio of the number of claims for every 100 exposures (where exposure is one vehicle).
Example: A frequency of 0.4 implies a ratio of 4 claims per 1000 vehicles.
YTD (Year to Date) is defined as the aggregate from the beginning of the year. In the above exhibit it means the
aggregated frequency from the beginning of the year to the current month.

Question 1: Based on the graph above what conclusions would you draw about the 2013 plan?
Answer The plan is higher than Actuals, it means the driver are driving more carefully

Question 2: Generally, where would you expect the Dec YTD Actual frequency to end up? What is your
rationale?
Answer around 0.49 base on the trend of the gap between plan and actuals from jan to Sep
Question 3: In the example below, you will find a logical sequence of five boxes. Please select the sequence that
would be next.
Answer

A B C D E
 Oct Nov Dec

Nov Dec
0.5 0.51

0.122
osure is one vehicle).

exhibit it means the

the 2013 plan?

efully

up? What is your

m jan to Sep
se select the sequence that