DOCSLIB.ORG

BASIC RATEMAKING Fifth Edition, May 2016

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
BASIC RATEMAKING Fifth Edition, May 2016 BASIC RATEMAKING Fifth Edition, May 2016 Geoff Werner, FCAS, MAAA Claudine Modlin, FCAS, MAAA Willis Towers Watson With significant contributions from: Alice Gannon, FCAS, MAAA; Serhat Guven, FCAS, MAAA; Christine Gennett, ACAS, MAAA; Jeff Kucera, FCAS, MAAA; Brett Nunes, ASA, MAAA; and Dave Otto, FCAS, MAAA © Casualty Actuarial Society, 2016 Basic Ratemaking Geoff Werner, FCAS, MAAA and Claudine Modlin, FCAS, MAAA Willis Towers Watson With significant contribution from: Alice Gannon, FCAS, MAAA; Serhat Guven, FCAS, MAAA; Christine Gennett, ACAS, MAAA; Jeff Kucera, FCAS, MAAA; Brett Nunes, ASA, MAAA; Dave Otto, FCAS, MAAA VERSION 5, MAY 2016 © Copyright Casualty Actuarial Society, 2016 This text outlines basic property/casualty insurance ratemaking concepts and techniques. It is intended to be a single educational text to prepare actuarial candidates practicing around the world for basic ratemaking. A key concept in the text is the fundamental insurance equation, which balances the expected future income and outgo of an insurance operation. Various chapters discuss the individual components of the equation (e.g., premium, loss, expense, profit), and other chapters review how to assess whether the equation is in balance in the aggregate and by customer segment. The text focuses on quantitative analysis as well as practical considerations in the ratemaking process. Finally, the text provides consistent definitions of terms and examples that underlie the ratemaking techniques discussed. i FOREWORD Ratemaking is a key driver of property and casualty (P&C) insurance profitability and hence a primary actuarial responsibility. Actuaries employ a variety of ratemaking techniques depending on specific circumstances. For example, techniques used to price short-tailed lines of insurance (e.g., personal automobile) are different than techniques used in long-tailed lines (e.g., workers compensation). Even within the same insurance product, actuarial techniques may differ due to regulatory requirements and data limitations. Furthermore, actuarial techniques are constantly evolving due to enhanced information and advances in technology. This text is not intended to document every technique used for P&C insurance ratemaking. Instead, the purpose of this text is to provide an overview of basic ratemaking techniques used in the industry. As such, actuaries should continue to increase the depth and breadth of their knowledge to be able to discern the most appropriate technique for a given situation. ACKNOWLEDGMENTS The completion of this text required significant effort from many individuals other than the primary authors. The authors want to acknowledge the following individuals for researching and summarizing existing ratemaking material, offering alternative ratemaking techniques, and reviewing countless drafts: Catherine Taylor, FCAS, MAAA and her CAS committee, comprised of Nancy Braithwaite, FCAS, MAAA; Ginda Fisher, FCAS, MAAA; Chris Styrsky, FCAS, MAAA; Jane Taylor, FCAS, MAAA; Theresa Turnacioglu, FCAS, MAAA; and Ron Zaleski, Jr., FCAS, MAAA, dedicated to partnering with EMB to facilitate the successful completion of this text. The following associates of EMB: Tom Hettinger, ACAS, MAAA; David Sommer, FCAS; Emily Stoll, ACAS, MAAA; Julie Walker, ACAS, MAAA; Sandy Wu, ACAS, MAAA; Harsha Maddipati; and Peter Quackenbush. The following actuaries who were consulted for their expertise in specific ratemaking topics: Joseph Palmer, FCAS, MAAA; James Guszcza, FCAS, MAAA; and Will Davis, FCAS, MAAA. All of the authors who developed the materials from the prior Ratemaking examination; EMB relied heavily upon that material when creating this text. Howard Mahler, FCAS, MAAA for his valuable contributions to subsequent versions of the text. REFERENCE MATERIAL The objective of the CAS in creating a new basic ratemaking text was to replace the series of readings that existed on the syllabus of basic education as of 2007 with a single educational publication. As such, the authors relied heavily on a series of published articles and texts that are contained in the Bibliography at the end of the text. Specific references to each of these sources are also present in individual chapters. ii ROUNDING Rounding procedures have been applied in a manner consistent with the number of decimals shown in the text and tables (or per rounding procedures specifically outlined in the text). Small discrepancies may exist between the text and table entries when the text is summarizing multiple calculations within a table or further dissecting calculations in a table for illustrative purposes. ORGANIZATION OF THIS TEXT This text is organized into sixteen chapters plus six appendices. The chapters discuss various ratemaking concepts and techniques, and provide simple examples. Each chapter concludes with a narrative summary as well as an outline of key concepts covered in the chapter. The appendices provide in-depth practical examples of some of the techniques discussed throughout the text. In order to reinforce the concepts and techniques discussed in the body of the text, the authors suggest Appendices A-D be read upon completion of Chapter 8, and Appendices E-F be read upon completion of Chapters 9-10. Below is a summary of the content of each chapter and appendix. Chapter 1 provides an overview of P&C insurance ratemaking, highlighting the unique relationship between price, cost, and profit. This overview includes basic P&C insurance terms and commonly used insurance ratios. This chapter also introduces the fundamental insurance equation, a key concept that is referenced frequently in other chapters. This concept states that premium charged for policies written during a future time period should be appropriate to cover the losses and expenses expected for those policies while achieving the targeted profit. Chapter 2 discusses the P&C insurer rating manual, an aid for anyone who needs to understand the process of calculating an insurance premium. The four main components of P&C insurer rating manuals are rules, rate pages, rating algorithms, and underwriting guidelines. The chapter also includes three rating manual examples for different insurance lines of business. Chapter 3 discusses ratemaking data, both internal and external to the insurance company, and introduces methods of data organization. An example of internal data requirements is provided, as well as sources of external data. Chapter 4 discusses insurance exposures, the basic unit that measures a policy’s exposure to loss and therefore serves as the basis for the calculation of premium. The chapter outlines criteria for selecting exposure bases, methods and quantitative examples for defining and aggregating exposures, and circumstances requiring a measurement of exposure trend. Chapter 5 focuses on premium, the price the insured pays for the insurance product and one of the key elements of the fundamental insurance equation. The chapter discusses different ways to define and aggregate premium (including quantitative examples) and introduces standard techniques to adjust historical premium data to make it relevant for estimating future premium in the context of ratemaking. These adjustments include current rate level, premium development in consideration of premium audits, and premium trend. These adjustments to premium are relevant in loss ratio analysis. iii Chapter 6 is dedicated to losses and loss adjustment expenses. Losses are amounts paid or owed to claimants under the provisions of the insurance contract. This chapter outlines the different types of insurance losses, reviews how loss data is aggregated for ratemaking analysis, and defines common metrics involving losses. This chapter also describes the various adjustments to historical loss data to make it relevant for estimating future losses. These include adjustments for extraordinary events, changes in benefit levels, changes in loss estimates as claims mature, and changes in cost levels over time. Finally, the chapter discusses the treatment of loss adjustment expenses in ratemaking. Chapter 7 covers methods for projecting underwriting expenses and addresses how to incorporate the cost of reinsurance and an underwriting profit provision in the rates. Chapter 8 demonstrates how to combine the various estimated components of the fundamental insurance equation (i.e., premium, loss, expense) to ascertain the appropriate overall rate level (or rate level change) for the future policy period. The two overall rate level methods discussed are the pure premium and loss ratio methods. The methods are mathematically equivalent, but each offers advantages and disadvantages in certain circumstances. Chapter 9 covers rate adequacy at the individual risk (or risk segment) level. The chapter discusses the concept of risk segmentation via rating variables and outlines criteria to consider when using a certain risk characteristic as a rating variable. The chapter also reviews the application of univariate methods to historical data to calculate rate differentials (or changes to existing rate differentials) for each rating variable. This process is known as classification ratemaking. Chapter 10 is an extension of Chapter 9 that specifically addresses multivariate classification ratemaking techniques. The chapter discusses the benefits of multivariate approaches and provides a basic explanation of the mathematical foundation of one commonly used multivariate method, generalized linear models (GLMs). Sample output with explanation is provided for GLM results
Load more

Recommended publications
  • Famous People Related to Actuarial Science
    Article from Actuary of the Future November 2018 Issue 43 with James to find market inefficiencies and start baseball- Famous People Related focused companies such as STATS LLC, which he later sold to Fox Sports. James was named one of Time maga- to Actuarial Science zine’s 100 most influential people in the world in 2006. By Harsh Shah • Howard Winklevoss, MAAA. Those who have seen the movie The Social Network or have read about the history of Facebook are familiar with twins Cameron and Tyler Win- klevoss. Their father, Howard Winklevoss, is an actuary. He is the founder of Winklevoss Consultants, a pension and benefits management firm. • Anette Norberg. Winner of the Olympic Gold Medal f you are reading this article, chances are you have heard about in curling in 2006 and 2010, Anette Norberg is the first actuaries or actuarial science before, but the average person is skipper in Olympic curling history to defend her title. likely unaware of those terms. What people might not realize Norberg was also the chief actuary at Nordea Bank AB Iis that there are many famous individuals connected with this and later appeared as a contestant on Swedish TV’s Let’s field. These are some of the exemplary individuals related to, Dance 2013. but not always known for, actuarial science. • Warren Buffett. One of the wealthiest people in the world, • Sir Edmond Halley. Largely known for his contributions Warren Buffett almost chose a career in actuarial science to astronomy and calculating the orbit of the comet named after meeting a Geico vice president in 1951.
    [Show full text]
  • Mathematicians, Statisticians & Actuaries
    Mathematicians, Statisticians & Actuaries An employment guide for newcomers to British Columbia Mathematicians, Statisticians & Actuaries An employment guide for newcomers to British Columbia Contents 1. What Would I Do? ..................................................................................... 2 2. Am I Suited For This Job? ........................................................................... 3 3. What Are The Wages And Benefits? ............................................................. 4 4. What Is The Job Outlook In BC? .................................................................. 5 5. How do I become a Mathematician, Statistician, or Actuary ............................. 5 6. How Do I Find A Job? ................................................................................ 7 7. Applying for a Job ................................................................................... 10 8. Where Can This Job Lead? ........................................................................ 10 9. Where Can I Find More Information? .......................................................... 11 Mathematicians, Statisticians & Actuaries (NOC 2161) Mathematicians, Statisticians & Actuaries may also be called: . consulting actuary . actuarial analyst . insurance actuary . demographer . statistical analyst . biostatistician 1. What Would I Do? Mathematicians, Statisticians & Actuaries research mathematical or statistical theories, and develop and apply mathematical or statistical techniques for solving problems in fields
    [Show full text]
  • February 1, 2018 MASSACHUSETTS PRIVATE PASSENGER RESIDUAL MARKET AUTOMOBILE INSURANCE MANUAL
    MASSACHUSETTS PRIVATE PASSENGER RESIDUAL MARKET AUTOMOBILE INSURANCE MANUAL SECTION I - GENERAL RULES RULE 1. ELIGIBILITY All individually owned vehicles registered under the Massachusetts Compulsory Motor Vehicle Law that are eligible for private passenger motor vehicle insurance under the rules of the Massachusetts Automobile Insurance Plan (MAIP) may be rated in accordance with this manual and written on the Massachusetts Automobile Insurance Policy. RULE 2. COVERAGES AND LIMITS The types of coverages available in the CAR Massachusetts Automobile Insurance Policy are: Compulsory Insurance Coverages Part 1 - Bodily Injury to Others The basic limits are $20,000 each person and $40,000 each accident. Part 2 - Personal Injury Protection The basic limit is $8,000 for each person. Refer to Rule 30 for available deductibles. Part 3 - Bodily Injury Caused By an Uninsured Auto The basic limits are $20,000 each person and $40,000 each accident. Increased limits are available. The limits may not exceed the limits of Part 5, or if Part 5 is not purchased, Part 1 of this policy. This coverage is excess over Personal Injury Protection. Part 4 - Damage to Someone Else’s Property The basic limit is $5,000 each accident. Increased limits are available. Optional Insurance Coverages Part 5 - Optional Bodily Injury to Others The basic limits are $20,000 each person and $40,000 each accident. Increased limits are available. Part 6 - Medical Payments The basic limit is $5,000 each person. Higher limits are available for all motor vehicles rated in this manual. Motorcycle limits are available from $500 to $25,000. This coverage is excess over Personal Injury Protection.
    [Show full text]
  • Stronger Together
    Stronger Together 2020 ANNUAL REPORT Stronger Together | 2020 Annual Report OUR VISION To be a great company committed to improving the lives of people in the communities in which we operate. 1 TABLE OF CONTENTS FINANCIAL HIGHLIGHTS 2 SAGICOR GROUP CHAIRMAN’S REVIEW 5 SAGICOR GROUP PRESIDENT & CHIEF EXECUTIVE OFFICER’S MESSAGE 7 BOARD OF DIRECTORS 10 EXECUTIVE MANAGEMENT 16 GROUP ORGANISATIONAL CHART 22 CORPORATE & SOCIAL RESPONSIBILITY 24 HUMAN CAPITAL REPORT 39 INNOVATION & TECHNOLOGY 45 MANAGEMENT DISCUSSION & ANALYSIS 46 INDEX TO THE CONSOLIDATED FINANCIAL STATEMENTS 130 SHAREHOLDER INFORMATION 308 OFFICES 310 2 FINANCIAL HIGHLIGHTS SHAREHOLDERS’ RETURNS NET INCOME 1 COMMON DIVIDENDS BOOK VALUE PER SHARE3 7.59 7.81 8.50 8.83 7.66 (4) 87 37 62 60 33 15 15 15 14 2020 20192 2018 2017 2016 2020 20192 2018 2017 2016 2020 2019 2018 2017 2016 1 from continuing operations 2 2020 2019 2018 2017 2016 2 before Alignvest Acquisition II Corporation transaction costs 3 3 Basic earnings per share (2.4¢) 57.5¢ 51.7¢ 88.7¢ 84.4 under the Alignvest transaction, Sagicor Financial Corporation Limited common shares not purchased for cash, were exchanged for common shares of Sagicor Financial Company Ltd on an exchange 1,2 ratio of one Sagicor Financial Company Ltd. common share for 4.328 of Sagicor Financial Corporation Limited common shares (“Exchange Ratio”). This exchange ratio has been used to convert the 2018 Return on shareholder’s equity (0.3%) 10.50% 6.20% 11.30% 12.30 and prior years outstanding shares to the Sagicor Financial Company Ltd equivalent.
    [Show full text]
  • Actuarial Studies Within the Biometry and Statistics and Statistical Science Majors
    Actuarial Studies within the Biometry and Statistics and Statistical Science majors An actuary is a business professional who analyzes the financial consequences of risk. Actuaries use mathematics, statistics and financial theory to study uncertain future events, especially those of concern to insurance and pension programs. They evaluate the likelihood of those events, design creative ways to reduce the likelihood and decrease the impact of adverse events that actually do occur. To be more specific, actuaries improve financial decision making by developing models to evaluate the current financial implications of uncertain future events. Actuaries are an important part of the management team of the companies that employ them. Their work requires a combination of strong analytical skills, business knowledge and understanding of human behavior to design and manage programs that control risk. No matter the source, actuary is consistently rated as one of the best jobs in America. US News and World Report, the Jobs Rated Almanac, CNN Money, and others all agree: few other occupations offer the combination of benefits that an actuarial career can offer. In almost every job satisfaction category, such as work environment, employment outlook, job security, growth opportunity, and salary (especially starting salary), a career as an actuary is hard to beat. Required courses for the Biometry and Statistics and Statistical Science majors Calculus I and II: MATH 1110 & 1120 Multivariable Calculus and Linear Algebra: MATH 2210 & 2220 or 2230 & 2240
    [Show full text]
  • The Role of Actuaries in Non-Life Insurance Business
    The role of actuaries in non-life insurance business Society of Actuaries in Ireland February 2004 The role of actuaries in non-life insurance February 2004 Table of contents Page Executive summary 1 1. Introduction 3 2. The role of the actuary in claims reserving 5 3. The role of the actuary in pricing 7 4. The role of the actuary in corporate risk management 9 5. The prudential supervision of non-life insurance internationally 11 6. The philosophy of insurance regulation in Ireland 14 7. The present and future statutory role of actuaries in non-life insurance in Ireland 16 Society of Actuaries in Ireland The role of actuaries in non-life insurance February 2004 Executive summary Overview of actuarial involvement in the management of non-life insurance ■ Actuaries are now widely employed in claims reserving, pricing, risk management and, indeed, in most areas of non-life insurance. ■ Claims reserving is a key actuarial role in a non-life insurance undertaking. In addition to the application of statistical techniques, professional judgement is a crucial element in the actuarial reserving process and is fundamental to the statutory role of the actuary in signing the “Statement of Actuarial Opinion”. The experienced actuary needs to understand the limitations of any statistical or actuarial reserving method and must use his professional judgement in choosing and applying such methods. ■ In most of the large non-life insurance undertakings in Ireland, actuaries have a significant involvement in pricing, either as technical advisors to underwriters and senior management, or as decision-makers in their own right.
    [Show full text]
  • The Role of the Actuary in the Prudential Supervision of Insurance Companies
    IAA Committee on Insurance Regulation The Role of the Actuary in the Prudential Supervision of Insurance Companies The Role of the Actuary in Prudential Supervision Introduction The purpose of this note is to set out the IAA’s position on the role that actuaries should fulfil in the prudential supervision of insurance companies. This paper is intended to lay out a vision of best practices and recognizes that no country has these best practices in place yet. It also sets out the factors that actuaries should consider in evaluating the financial condition of insurers. This document should be read in conjunction with the more detailed note “Insurance Liabilities - Valuation and Capital Requirements” prepared by the IAA’s Insurance Accounting Committee as an adjunct to their consideration of the IASC’s 1999 Insurance Issue Paper. It is expected that this paper will form the basis of an ongoing dialogue with the International Association of Insurance Supervisors (“IAIS”) on the involvement of actuaries in the prudential supervision of insurers. In particular, this paper extends the scope of the Committee’s response to the IAIS’s own paper “On Solvency, Solvency Assessment and Actuarial Issues” published in April 2000. The evolution of prudential supervision of insurance companies is at different stages in different countries. The role of actuaries in that supervision is also evolving. The roles and standards set out in this note should be seen as broad goals towards which it is hoped that IAA member associations, together with the regulators with whom they work, can progress. This document will itself evolve as best practice in prudential supervision develops.
    [Show full text]
  • The Actuary Vol. 13, No. 6 Confidentiality of Federal Statistics
    Article from: The Actuary June 1979 – Volume 13, No. 6 Page Eight THE ACTUARY *-\ hne, 1979 ARCH conditions for interagencies exchange of the life office so that I put by for six individually identifiable data. weeks all mathematics . and have ARCH Issue 1978.2 has made its wel- literally not a moment of leisure. ” -- come appearance in new format-275 Certain agencies, e.g. Census and pages in a light blue cover. Rather than BLS, are designated “Protected Statisti- Bowditch developed methodology for to list the titles and authors, for which cal Centers.” Files in other agencies can examining separately the profitability of see John Beekman’s article, The Actuary, be designated “Protected Statistical his annuity and of his life insurance op- November 1978, we prefer to whet read- Files.” Individually identifiable records erations. Despite his earlier accurate ing appetites by quoting James C. Hick- may not be published or disclosed ex- perception that the annuity rates of the man’s descriptive introduction, thus: cept to a Protected Statistical Center. competing companies were inadequate, A Chief Statistician is made responsible he subsequently determined that between “Most actuaries have heard the criti- for designating protected files and cen- 1823 and 1834 his own company had cism that their basic tool, the mathe- ters unless legislation has provided other- lost approximately $15,000 on its an- matics of life contingencies, solidified wise. Protection extends ,to copies in the nuity business. in the last century, and not much has possession of the person to whom the Upon completion of my investigation, happened since.
    [Show full text]
  • Understanding the Basics of Actuarial Methods
    Pension Review Board Understanding the Basics of Actuarial Methods April 2013 Research Paper No. 13-001 Pension Review Board Paul A. Braden, Chair J. Robert Massengale, Vice Chair Andrew W. Cable Leslie Greco‐Pool Robert M. May Richard E. McElreath Wayne R. Roberts Representative William "Bill" Callegari Senator John H. Whitmire Christopher Hanson, Executive Director Project Staff Daniel Moore, Actuary Steve Crone, Research Specialist Reviewer Norman W. Parrish The Pension Review Board would like to acknowledge the many valuable contributions and suggestions made by members of the Texas public retirement and actuarial communities during the writing of this paper. Special thanks to John M. Crider, Jr., ASA, EA, MAAA and Mickey G. McDaniel, FCA, FSA, MAAA, EA for providing staff with thorough and thoughtful comments during the peer review process. Material in this publication is not copyrighted and may be reproduced. The Pension Review Board would appreciate credit for any material used or cited and a copy of the reprint. Additional information about this report may be obtained by contacting the Pension Review Board, by phone at (512) 463‐1736, by email at [email protected], or by mail at P. O. Box 13498 Austin, Texas 78711‐3498. Understanding the Basics of Actuarial Methods Introduction This paper is designed to make the theories and language of actuarial methods related to public pensions in the State of Texas more understandable. Present conditions in public finance on both the state‐wide and local governmental levels require a more complete understanding of how pensions are structured and how actuarial language describes that structure.
    [Show full text]
  • Becoming an Actuary
    Becoming an Actuary Seattle Central College International Education Programs Career Information Is Actuary for Me? Actuaries are professionals who provide expert In order to pursue an actuarial career, you must advice and relevant solutions for business and enjoy studying subjects such as Math and societal problems that involves financial risk. Business and possess the following skills. Actuaries work in all sectors of the economy, though they are more heavily represented in the Specialized math knowledge financial service sector, including insurance Calculus, statistics, probability companies, commercial banks, investment banks Keen analytical, project management and and retirement funds. Becoming a fully problem solving skills credentialed actuary requires a rigorous series of Good business sense exams. This information sheet will discuss about Finance, Accounting and Economics how to become an Actuary in the United States. Solid oral and written communication skills International students should consider their Strong computer skills career options in their home country. Do you Word processing, spreadsheets, need to take Actuarial exams in U.S. to meet your statistical analysis programs, database career goals at home? What are the manipulation, programming languages requirements in your home country? These are some of the questions you will want to answer Exams and VEE requirement before making a decision about academic paths As you may know, there are series of exams to you commit to pursue. pass in order to gain professional status as an What majors/courses should I choose to Actuary. Most people achieve Associateship in become an Actuary? three to five years and Fellowship after several additional years. To gain an entry-level position Although there is a major called “Actuarial for an Actuarial career upon graduation, it is Science”, few universities offer this major.
    [Show full text]
  • Actuarial Firms Are Asking Pension Plan Administrators to Consider
    NASRA Limitations on Liabilities for Actuarial Services Actuarial firms are requesting that pension plan trustees consider limitations on liabilities, or limiting recovery of damages due to errors in actuarial work. Although this request has the appearance potentially of not being consistent with trustees’ fiduciary responsibility to protect participants and their assets, there may be circumstances where a limitation of liability, if legally permissible for a retirement system, may be appropriate. As this debate continues, the National Association of State Retirement Administrators (NASRA) prepared this paper to provide guidance for administrators renewing or negotiating contracts with actuarial firms. Exploration of limiting actuarial firm liability was prompted by these facts: 1) the services provided by actuarial firms are essential to the administration of a pension plan, and 2) actuarial firm representatives argue that without adequate protection from lawsuits, they face potentially devastating financial risks and may be forced to decline certain assignments. This paper was prepared by a group of NASRA members who accepted an invitation to participate, and representatives of actuarial firms who are NASRA associate members. This paper is not intended to be prescriptive; rather, it is intended to foster discussion of this issue. Because of the critical role actuaries play in pension administration, it is important that trustees and the firm’s representatives have confidence in one another. Actuarial firms also should not be held liable for errors that are the fault of the retirement system or its other vendors, or that are made under time constraints that do not permit adequate attention to accuracy. Actuaries should qualify their results in writing if they believe they have been given inadequate time to conduct their review.
    [Show full text]
  • Management Discussion and Analysis Are As Follows
    SAGICOR FINANCIAL COMPANY LTD. MANAGEMENT’S DISCUSSION & ANALYSIS For the three-month periods and years ended December 31, 2020 and December 31, 2019 MANAGEMENT’S DISCUSSION AND ANALYSIS Introduction and Notice The principal activities of the Sagicor Group are as follows: • Life and health insurance, This Management’s Discussion and Analysis (“MD&A”) contains important information about • Annuities and pension administration services, Sagicor’s business and its performance for the three-month period and year ended December • Banking and investment management services, 31, 2020 with comparative analysis for the corresponding periods ended December 31, 2019. This MD&A should be read in conjunction with the Company’s annual financial statements, prepared in accordance with International Financial Reporting Standards (IFRS), in effect on and its principal operating companies are as follows: the date of such information. • Sagicor Life Inc. (Barbados and Trinidad & Tobago), The following discussion is based on the financial condition and results of operations of Sagicor, • Sagicor Life Jamaica Limited (Jamaica), unless otherwise specified or indicated. Financial information is presented in millions of US • Sagicor Bank Jamaica Limited (Jamaica), dollars, unless otherwise indicated. Amounts for subtotals, totals and percentage variances • Sagicor Life Insurance Company (USA). included in tables in this MD&A may not sum or calculate using the numbers as they appear in the tables due to rounding. The Group also underwrites property and casualty insurance and provides hospitality services. Legal Constitution and General Information Result of Operations Sagicor Financial Company Ltd. (“Sagicor”) (“the Company”) (TSX: SFC) is a leading financial services provider in the Caribbean, with over 180 years of history.
    [Show full text]