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| Sensitivity Analysis | ||||||||
| Impact of varying key assumptions on combined ratio, premium, and profitability | ||||||||
| Loss Ratio Sensitivity on Combined Ratio & Profit | ||||||||
| Scenario | Loss Ratio | Combined Ratio | UW Profit % | UW Profit $ | ROE | |||
| Favorable (-10%) | 55.8% | 91.8% | 8.2% | $7,353,207 | 13.3% | |||
| Slightly Favorable (-5%) | 58.9% | 94.9% | 5.1% | $4,579,496 | 9.0% | |||
| Base Case | 62.0% | 98.0% | 2.0% | $1,805,786 | 4.6% | |||
| Slightly Adverse (+5%) | 65.1% | 101.1% | (1.1%) | ($967,925) | 0.3% | |||
| Adverse (+10%) | 68.2% | 104.2% | (4.2%) | ($3,741,636) | -4.0% | |||
| Severe (+15%) | 71.3% | 107.3% | (7.3%) | ($6,515,347) | -8.3% | |||
| Catastrophic (+20%) | 74.4% | 110.4% | (10.4%) | ($9,289,057) | -12.6% | |||
| Expense Ratio Sensitivity on Combined Ratio | ||||||||
| Scenario | Expense Ratio | Combined Ratio | UW Profit % | Impact vs Base | ||||
| Reduced Expense (-3pp) | 23.5% | 95.0% | 5.0% | -3.0% | ||||
| Slightly Reduced (-1.5pp) | 25.0% | 96.5% | 3.5% | -1.5% | ||||
| Base Case | 26.5% | 98.0% | 2.0% | +0.0% | ||||
| Slightly Higher (+1.5pp) | 28.0% | 99.5% | 0.5% | +1.5% | ||||
| Higher Expense (+3pp) | 29.5% | 101.0% | (1.0%) | +3.0% | ||||
| Two-Way Sensitivity: Combined Ratio (Loss Ratio vs Expense Ratio) | ||||||||
| LR \ Exp Ratio | 22.5% | 24.5% | 26.5% | 28.5% | 30.5% | |||
| 55.8% | 87.8% | 89.8% | 91.8% | 93.8% | 95.8% | |||
| 58.9% | 90.9% | 92.9% | 94.9% | 96.9% | 98.9% | |||
| 62.0% | 94.0% | 96.0% | 98.0% | 100.0% | 102.0% | |||
| 65.1% | 97.1% | 99.1% | 101.1% | 103.1% | 105.1% | |||
| 68.2% | 100.2% | 102.2% | 104.2% | 106.2% | 108.2% | |||
| Note: Base case is highlighted. Values exceeding 100% combined ratio indicate underwriting losses. | ||||||||