Reinsurance Benefit Example
 
 
 
Assumptions
 
New
Used
net ceded premium
 
$550
$600
claims per contract
 
$275
$350
investment income
 
5%
5%
New Vehicle Example
 
 
Underwriting
Investment
Net Income
 
Premiun
Claims
Profit
Income
Before Tax
Year 1
$550
$20
$530
$26.50
$556.50
Year 2
$556.50
$50
$506.50
$25.33
$531.83
Year 3
$531.83
$75
$456.83
$22.84
$479.67
Year 4
$479.37
$100
$379.37
$18.97
$398.34
Year 5
$398.34
$30
$368.34
$18.42
386.76
Used Vehicle Example
 
 
 
 
 
Year 1
$600
$25
$575
$28.75
$603.75
Year 2
$603.75
$75
$529
$26.44
$555.19
Year 3
$555.19
$110
$445.19
$22.26
$467.45
year 4
$467.45
$115
$352.45
$17.62
$370.07
Year 5
$370.07
$25
$345.07
$17.25
362.32
 
Please enter the number of new and used agreements to see a quick calculation of profits at the end of the contract term.

New Agreements: Used Agreements:

Total Profit at end of term:

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