Cashflow projections

Public liability
insurance

Policy renewal rate

Average sum insured
Premium rate per policy
Claim rate

80%
2,500,000
1.025% as percent of su
0.45% as percent of su

Reinsurance premium
Commissions receivable
Interest p.a on invested premium

Year

Month
1
1
1
1
1
1
1
1
1
1
1
1
2
2
2
2
2
2
2
2
2
2
2
2
3
3
3
3
3
3
3

New policies
1
2
3
4
5
6
7
8
9
10
11
12
1
2
3
4
5
6
7
8
9
10
11
12
1
2
3
4
5
6
7

25% assuming proport

15%
7%

New +
Renewals

Renewals
42
2
25
25
30
4
30
6
15
3
14
5
37
24
19
33
43
26
18
14
19
50
28
4
38
23
3
25
2
24
3

34
2
20
20
24
3
24
5
12
2
11
4
56
20
31
42
54
23
34

42
2
25
25
30
4
30
6
15
3
14
5
71
26
39
53
67
29
42
19
31
52
39
8
94
43
34
67
56
47
37

3
3
3
3
3
4
4
4
4
4
4
4
4
4
4
4
4
5
5
5
5
5
5
5
5
5
5
5
5
6
6
6
6
6
6
6
6
6
6
6
6

8
9
10
11
12
1
2
3
4
5
6
7
8
9
10
11
12
1
2
3
4
5
6
7
8
9
10
11
12
1
2
3
4
5
6
7
8
9
10
11
12

31
40
28
25
24
2
29
49
12
37
5
43
28
18
22
43
45
18
16
42
45
47
4
10
11
41
23
45
28
2
20
17
6
43
50
28
41
23
15
36
12

15
25
42
31
6
76
35
27
54
44
38
29
37
52
56
45
24
62
51
61
53
65
34
58
52
56
62
70
55
64
54
82
78
90
31
54
50
77
68
92
67

46
65
70
56
30
78
64
76
66
81
43
72
65
70
78
88
69
80
67
103
98
112
38
68
63
97
85
115
83
66
74
99
84
133
81
82
91
100
83
128
79

Commission rate
Management expense
Administrative expense
Administrative expense

10% as percent of premium

25% as percent of premium
2,000 per policy
7.805% as percent of sum insured

Maximum no of new policies per

Number of policies at the end of 6

Premiums
received
1,076,250
51,250
640,625
640,625
768,750
102,500
768,750
153,750
384,375
76,875
358,750
128,125
1,809,125
656,000
999,375
1,358,125
1,716,875
748,250
1,076,250
481,750
794,375
1,342,750
1,004,500
205,000
2,421,050
1,114,175
876,375
1,727,125
1,424,750
1,213,600
937,875

50
79

Paid
Paid
Paid
management
administrative
commission
expense
expense
107,625
269,063
84,000
5,125
12,813
4,000
64,063
160,156
50,000
64,063
160,156
50,000
76,875
192,188
60,000
10,250
25,625
8,000
76,875
192,188
60,000
15,375
38,438
12,000
38,438
96,094
30,000
7,688
19,219
6,000
35,875
89,688
28,000
12,813
32,031
10,000
180,913
452,281
141,200
65,600
164,000
51,200
99,938
249,844
78,000
135,813
339,531
106,000
171,688
429,219
134,000
74,825
187,063
58,400
107,625
269,063
84,000
48,175
120,438
37,600
79,438
198,594
62,000
134,275
335,688
104,800
100,450
251,125
78,400
20,500
51,250
16,000
242,105
605,263
188,960
111,418
278,544
86,960
87,638
219,094
68,400
172,713
431,781
134,800
142,475
356,188
111,200
121,360
303,400
94,720
93,788
234,469
73,200

1,179,775
1,660,500
1,791,700
1,444,225
779,000
1,988,090
1,634,465
1,956,725
1,689,200
2,087,925
1,099,005
1,852,175
1,661,320
1,789,650
1,997,110
2,257,255
1,776,325
2,051,722
1,717,572
2,641,630
2,504,485
2,874,715
981,704
1,737,990
1,610,931
2,482,345
2,187,063
2,958,929
2,138,560
1,692,628
1,886,558
2,548,929
2,157,338
3,401,647
2,066,613
2,107,892
2,339,370
2,575,251
2,134,025
3,289,643
2,018,348

117,978
166,050
179,170
144,423
77,900
198,809
163,447
195,673
168,920
208,793
109,901
185,218
166,132
178,965
199,711
225,726
177,633
205,172
171,757
264,163
250,449
287,472
98,170
173,799
161,093
248,235
218,706
295,893
213,856
169,263
188,656
254,893
215,734
340,165
206,661
210,789
233,937
257,525
213,403
328,964
201,835

294,944
415,125
447,925
361,056
194,750
497,023
408,616
489,181
422,300
521,981
274,751
463,044
415,330
447,413
499,278
564,314
444,081
512,931
429,393
660,408
626,121
718,679
245,426
434,498
402,733
620,586
546,766
739,732
534,640
423,157
471,639
637,232
539,335
850,412
516,653
526,973
584,842
643,813
533,506
822,411
504,587

92,080
129,600
139,840
112,720
60,800
155,168
127,568
152,720
131,840
162,960
85,776
144,560
129,664
139,680
155,872
176,176
138,640
160,134
134,054
206,176
195,472
224,368
76,621
135,648
125,731
193,744
170,698
230,941
166,912
132,108
147,244
198,941
168,378
265,494
161,297
164,518
182,585
200,995
166,558
256,753
157,530

Notes
1 There is an implicit assumption that the period of outstanding claim is 4 months; a
2 No NCD provision
3 We reserve for the full claim yet part of clalim will be settled by the reinsurer.

Incurred claims Paid claims

39,375
41,250
64,688
88,125
116,250
39,375
120,000
41,250
148,125
64,688
153,750
88,125
167,813
116,250
170,625
120,000
183,750
148,125
188,438
153,750
215,250
167,813
237,375
170,625
250,500
183,750
276,750
188,438
311,438
215,250
335,063
237,375
346,313
250,500
358,313
276,750
373,313
311,438
419,625
335,063
443,250
346,313
3,041,625
446,063
358,313
1,682,250
468,450
373,313
1,682,250
485,213
419,625
480,713
443,250
494,213
446,063
483,525
468,450
500,550
485,213
495,488
480,713

Earned
Paid claims
reinsurance
from reinsurer recoveries
0
0
0
0
9,844
820
10,313
1,680
16,172
3,027
22,031
4,863
29,063
7,285
30,000
9,785
37,031
12,871
38,438
16,074
41,953
19,570
42,656
23,125
45,938
26,953
47,109
30,879
53,813
34,543
59,344
38,629
62,625
42,500
69,188
46,430
77,859
50,496
83,766
54,977
86,578
59,105
89,578
63,367
93,328
67,648
104,906
72,836
110,813
78,242
111,516
83,609
117,113
88,884
121,303
94,048
120,178
98,844

521,025
552,713
569,138
585,225
606,225
590,385
609,420
648,945
647,558
671,820
667,628
701,078
718,695
723,420
730,935
760,680
797,168
799,496
802,536
827,594
857,421
886,206
881,915
877,737
875,894
901,236
908,186
933,857
947,109
933,971
940,154
936,762
924,062
943,340
983,032
996,565
1,023,215
1,026,614
1,024,673
1,036,773
1,032,375

494,213
483,525
500,550
495,488
521,025
552,713
569,138
585,225
606,225
590,385
609,420
648,945
647,558
671,820
667,628
701,078
718,695
723,420
730,935
760,680
797,168
799,496
802,536
827,594
857,421
886,206
881,915
877,737
875,894
901,236
908,186
933,857
947,109
933,971
940,154
936,762
924,062
943,340
983,032
996,565
1,023,215

123,553
120,881
125,138
123,872
130,256
138,178
142,284
146,306
151,556
147,596
152,355
162,236
161,889
167,955
166,907
175,269
179,674
180,855
182,734
190,170
199,292
199,874
200,634
206,898
214,355
221,552
220,479
219,434
218,973
225,309
227,046
233,464
236,777
233,493
235,038
234,191
231,015
235,835
245,758
249,141
255,804

103,374
106,959
110,407
113,515
116,905
120,642
123,757
126,715
130,052
132,592
135,180
138,684
141,879
145,802
149,283
153,566
157,684
161,240
164,611
168,266
172,244
176,601
180,624
184,346
188,718
193,184
197,649
201,329
204,604
208,309
212,001
215,609
218,733
221,535
224,402
226,676
228,064
229,255
231,361
233,837
236,906

anding claim is 4 months; and that claims are settled as soon as they are reported

ettled by the reinsurer.

Reserving
requirement
(IBNR)
39,375
80,625
145,313
233,438
310,313
389,063
472,500
538,125
589,688
640,313
675,938
710,625
758,063
824,813
891,563
979,875
1,076,063
1,173,750
1,269,563
1,351,125
1,413,000
1,497,563
1,594,500
1,682,250
1,777,388
1,842,975
1,880,438
1,928,588
1,943,663
1,959,000
1,973,775

Paid
Reinsurance
reinsurance
commission
premium
received
269,063
40,359
12,813
1,922
160,156
24,023
160,156
24,023
192,188
28,828
25,625
3,844
192,188
28,828
38,438
5,766
96,094
14,414
19,219
2,883
89,688
13,453
32,031
4,805
452,281
67,842
164,000
24,600
249,844
37,477
339,531
50,930
429,219
64,383
187,063
28,059
269,063
40,359
120,438
18,066
198,594
29,789
335,688
50,353
251,125
37,669
51,250
7,688
605,263
90,789
278,544
41,782
219,094
32,864
431,781
64,767
356,188
53,428
303,400
45,510
234,469
35,170

2,000,588
2,069,775
2,138,363
2,228,100
2,313,300
2,350,973
2,391,255
2,454,975
2,496,308
2,577,743
2,635,950
2,688,083
2,759,220
2,810,820
2,874,128
2,933,730
3,012,203
3,088,278
3,159,879
3,226,793
3,287,046
3,373,757
3,453,135
3,503,279
3,521,751
3,536,781
3,563,052
3,619,172
3,690,387
3,723,122
3,755,091
3,757,997
3,734,949
3,744,318
3,787,196
3,846,998
3,946,151
4,029,425
4,071,067
4,111,275
4,120,435

294,944
415,125
447,925
361,056
194,750
497,023
408,616
489,181
422,300
521,981
274,751
463,044
415,330
447,413
499,278
564,314
444,081
512,931
429,393
660,408
626,121
718,679
245,426
434,498
402,733
620,586
546,766
739,732
534,640
423,157
471,639
637,232
539,335
850,412
516,653
526,973
584,842
643,813
533,506
822,411
504,587

44,242
62,269
67,189
54,158
29,213
74,553
61,292
73,377
63,345
78,297
41,213
69,457
62,300
67,112
74,892
84,647
66,612
76,940
64,409
99,061
93,918
107,802
36,814
65,175
60,410
93,088
82,015
110,960
80,196
63,474
70,746
95,585
80,900
127,562
77,498
79,046
87,726
96,572
80,026
123,362
75,688

Interest on
Investable
Premium +
invested
premium
interest
premium
346,500
348,459
1,959
364,959
367,023
2,064
573,273
576,514
3,241
782,764
787,190
4,426
995,315
1,000,943
5,628
992,693
998,305
5,613
1,181,118
1,187,796
6,678
1,149,171
1,155,669
6,498
1,163,169
1,169,745
6,577
1,074,495
1,080,571
6,075
1,047,946
1,053,871
5,925
941,371
946,694
5,323
1,361,331
1,369,028
7,697
1,409,603
1,417,573
7,970
1,555,573
1,564,369
8,795
1,813,181
1,823,433
10,252
2,160,933
2,173,152
12,218
2,176,677
2,188,984
12,307
2,284,984
2,297,903
12,920
2,176,253
2,188,558
12,305
2,132,871
2,144,930
12,060
2,242,168
2,254,845
12,678
2,231,933
2,244,553
12,620
1,952,240
1,963,278
11,038
2,369,426
2,382,823
13,397
2,321,908
2,335,036
13,128
2,173,936
2,186,228
12,292
2,296,216
2,309,199
12,983
2,299,449
2,312,450
13,001
2,217,958
2,230,498
12,541
2,051,736
2,063,337
11,601

1,948,954
2,011,049
2,098,710
2,080,058
1,821,594
1,919,249
1,887,182
1,942,597
1,891,196
1,983,714
1,739,336
1,696,536
1,593,435
1,506,804
1,490,668
1,524,745
1,386,561
1,331,536
1,161,104
1,257,465
1,273,729
1,406,953
928,433
665,637
330,621
245,479
69,080
144,364
(42,201)
(398,732)
(701,793)
(818,987)
(1,076,169)
(921,060)
(1,201,073)
(1,465,988)
(1,645,176)
(1,768,713)
(2,074,693)
(2,023,883)
(2,408,732)

1,959,974
2,022,420
2,110,576
2,091,819
1,831,894
1,930,101
1,897,852
1,953,581
1,901,889
1,994,930
1,749,171
1,706,128
1,602,444
1,515,324
1,499,097
1,533,366
1,394,401
1,339,064
1,167,669
1,264,575
1,280,931
1,414,909
933,683
669,401
332,491
246,866
69,470
145,180
(42,440)
(400,987)
(705,761)
(823,617)
(1,082,253)
(926,268)
(1,207,864)
(1,474,277)
(1,654,478)
(1,778,713)
(2,086,423)
(2,035,327)
(2,422,351)

11,020
11,371
11,866
11,761
10,300
10,852
10,670
10,984
10,693
11,216
9,834
9,592
9,010
8,520
8,428
8,621
7,840
7,529
6,565
7,110
7,202
7,955
5,249
3,764
1,869
1,388
391
816
(239)
(2,254)
(3,968)
(4,631)
(6,085)
(5,208)
(6,791)
(8,289)
(9,302)
(10,001)
(11,731)
(11,443)
(13,619)

50
100
150
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200

200
200
200
200
200
250
250
250
250
250
250
250
250
250
250
250
250
300
300
300
300
300
300
300
300
300
300
300
250
250
250
250
250
250
250
250
250
250
250
250
250

Cashflow statement
Cashflow statement
Year
Total policies in year
INFLOWS
Premiums received
Reinsurance commissions received
Reinsurance claims
Investment income
Total inflows
OUTFLOWS
Commission
Management expense
Administrative expense
Claims
Reinsurance premium
Total outflows
Net cashflow
Cumulative net cashflows

1
201

2
476

3
647

4
850

5
1,010

6
1,101