ref: reel030503 date: 1978-01-01 content: APPENDIX D
PROPOSED VML INSURANCE EXCHANGE PROJECTED OPERATING RESULTS
1979 1980 1981
PREMIUM INCOME $3,250,000 Reinsurance Cost (29%) 942,500 Ceding Commission (27.5%) 259,187 Reinsurance Profits -0- -0- 97,369 Net Earned Premium $2,566,687 $2,566,687 $2,664,056
LOSSES Adjusted 4yr. Average 912,456 EXPENSES (10.3% of E.P.) 335,000 Claims Expense (14% of Losses) 128,000 Total Loses & Expenses $1,375,456 $1,375,456 $1,375,456
NET UNDERWRITING GAIN $1,191,231 $1,191,231 $1,288,600
INVESTMENT INCOME Surplus @ 9% 90,000 $ 231,694 $ 350,221 Loss reserve @ 9% 17,098 17,098 Cash Flow @ 9% 184,048 184,048 184,048 TOTAL INVESTMENT INCOME $ 274,048 $ 414,840 $ 551,367
SAVINGS $1,465,279 $1,606,071 $1,839,967 Percent of Earned Premium 45.08 49.42 56.61 Interest to Subscribers 90,000 90,000 90,000 Policy Holders-Surplus $2,375,279 $3,891,350 $5,641,317
NOTE: This projection is based on 1976-77 premium payments reported by 64 municipalities in answer to a survey made in the Spring of 1978. Premiums can be expected to be higher in 1980 producing much larger figures for all factors shown in the statement. Loss projections are based on those reported in the survey. chunkid: 20650 recordid: 1670 page_number: 1