Select two Insurance companies. Using the data you find in report calculate and interpret the following 11 ratios -
1 ROE
2 ROA
3 Equity multiplier
4 Profit margin
5 Asset utilization
6 Net interest margin
7 Spread
8 Overhead efficiency
9 Interest expense ratio
10 Provision for loan loss ratio
11 Noninterest expense ratio
You will find the financials & the calculated ratios; use excel to help with the calculations you will make. Examine the trend over time for the company you selected. Feel free to compare two insurance companies. Put the ratios in a table & comment on the trends over time (over the last 5 years) – which insurance company is becoming more profitable? Does risk appear to be increasing or decreasing? Are they becoming more or less efficient? Do some analysis based on the ratios. Plan on 1/2 page for the ratios & 1.5 page summary.
Then search for recent articles on your insurance company & comment on how the pandemic is impacting the financial performance of your company. Write 1 page on what you find.
A 2.5 page write-up and a Excel will be good.
Website may useful https://cdr.ffiec.gov/public/ManageFacsimiles.aspx?ReportType=283
Sample Solution