IRIS Ratios

[The Bee]

Knowledge statements on page 95 of the Syllabus list IRIS (Insurance Regulatory Information Systems) Ratios as one of the items.
Is it safe to assume the CAS is referring to the MSA Ratios?
I could not find IRIS ratios in any of our readings...plus IRIS ratios are very similar to MSA.

[mexx]

That is the assumption I'm making.

[The Bee]

Thanks mexx.

Any ideas on what kind, if any, questions to expect from the IASA?

[justin777]

I'm expecting something a lot like question 23 from the 2007 7-C exam.
Where they give you some financial information from a fictitious annual statement and you have to calculate some of the ratios from MSA Exhibit 2.

This question asks for:
Net Leverage Ratio
Investment Risk Ratio
Net Loss Reserves to Equity
Return on Equity.

So probably some of the other ratios will be asked this year?
Maybe investment yield, gross and net risk ratios...

[The Bee]

I think both use Adjusted Equity.
The only MSA ratio that uses Equty that is not adjusted is ROE.

[justin777]

MSA Exhibit 2 which uses "Net U/W Leverage" ratio as its name:
Net Premium/Adjusted Equity

Annual Statement page 10.60 uses "Net Risk" ratio as its name:
Net Premium/Adjusted Equity

From this I would say they are the same, but maybe a different author uses them differently. I would just always use adjusted equity for either of these terms unless unadjusted equity is all they give you, in which case I would still state the formula as adjusted equity, but use what is given.

[bananas]

IASA stuff for me is a crap-shoot! Not sure what to expect from it and hopefully not too much of it!