1. Answer states UEP is 600. But as net premium reserve is 400 and net written premium is 1000, I would have thought EP is 600 (1000-400) and UEP is the 400 (i.e. premium reserve set aside as it is not earned). A relatively small UEP seems fathomable if many policies are less than 1 year duration. 2. In the claims and uncertainties part of the answer it states COR is 85%. Is it not the loss ratio is 85% at Sep? (70% in plan for YE) Can someone please explain this? Thanks
This question has been asked before. Take a look at our previous post: https://www.acted.co.uk/forums/index.php?threads/april-2011-question-2viii.10439/ It looks like this is a typo in the Examiners' Report. UEP probably means "unearned premium", which is 400 not 600. Again, yes, this looks like another typo. The fourth point of the Examiners’ Report confirms that COR=115% and LR=85%.
