Evaluating the impact of the large-batch approach in valuing life insurance businesses using industrial property and casualty insurance studies. The problem ranges from the fact that life insurance pricing is not having enough impact on the economy, to the fact that good pricing models improve the profitability of life insurers, and to the fact that the principle of large numbers is that life insurance prices It even extends to the fact that it has a big impact on the settings. The purpose of this study was to determine the economic impact of life insurance valuations and to see if business could be improved through primary and secondary means, and the research tool used was the Problem Statement Questionnaire. was. The population selected for the study consisted of his 100 members of his IGI staff and the data for this work are presented using tables and analyzed using simple percentages. Ultimately, researchers have found that life insurance valuations influence the economy and improve corporate profitability. As a recommendation, the researchers suggested that benchmarking is useful for large-number-principle-based evaluations. The valuation of life insurance businesses should also be regulated.

table of contents

Title page – – – – – – – – – –

Approval page – – – – – – – – – –

Mission– – – – – – – – –

Knowledge- – – – – – – – –

overview- – – – – – – – – – –

table of contents – – – – – – – –

chapter One


1.1 Research Background —

1.5 Research hypothesis – – – – – – –

1.6 Significance of the survey — — — — —

1.7 Scope and Limitations of the Investigation – – – – –

1.8 Definition of Operational Terms – – – – – –

References– – – – – – – – –

Chapter 2

literature review

2.1 Overview — – – – – – – –

2.2 History and development of life

Insurance in Nigeria – – – – – – –

2.3 Forces driving the development of life

insurance – – – – – – –

Development of life insurance in 2.4

Economy in transition – – – – – –

2.5 Life Insurance Market in Economy

In transition- – – – – – – – –

2.6 Reason for evaluation

life insurance companies – – – – –

2.7 Effects of Insurance Business

in economic development

chapter One


1.1 Research background

Traditionally, life insurance companies have reported financial results to shareholders under the statutory requirements of the Insurance Companies Act. Therefore, statutory operating profit was the most common indicator for the financial year of life insurance companies. This is a useful measure as it also represents the amount that can be paid to policyholders or paid out in the form of dividends.

A major drawback to relying on statutory income as a measure of company performance is that statutory accounts tend to be designed to prevent bankruptcy and are therefore inherently plagued with conservatism.

Statutory profit is not a sufficient measure of how a company will perform on a going concern basis. For example, capital invested in acquiring a business (acquisition of a profitable new business leads to an immediate “loss” followed by a series of increasing profits.

The statutory approach lends itself well to solvency testing by offsetting the “capital” cost of new business against revenue and ignoring future excess flows attributable to new business, but at best the period trading in any accounting period Does not provide a meaningful representation of activity A slowdown in sales leads to an immediate increase in statutory income, and generally speaking, most businesses do not consider a slowdown in sales to be a sign of a healthy business. So statutory income is the wrong way to measure a company’s health.

In the early 1970s, due largely to shortcomings in statutory accounting, US insurance companies were required by the Securities and Exchange Commission to report earnings to shareholders in accordance with generally accepted principles (GAAP).

A key benefit of GAAP accounting is that it seeks to generate earnings that reflect whether an insurance company has performed in a manner that is beneficial to management. Generally, under GAAP, increased earnings will not adversely affect GAAP results to the extent required by statutory results.

Unfortunately, acquisition costs have been deferred 100%, so sales growth will put some pressure on GAAP earnings. Additionally, margins are typically introduced into assumptions for maintenance and GAAP can suffer from lock-in principles. Once an assumption is made about a particular generation or line of business, the assumption cannot be changed, except for future losses. Another major drawback of GAAP is that his GAAP earnings between two identical companies can be very large depending on the objectivity of management’s assumptions. As a whole, therefore, GAAP is not an adequate predictor of a company’s performance.

During the period of US interest rate fluctuations in the mid-1970s and early 1980s, some US companies began to look at cash flow as a measure of “how well” they were performing.

1.2 Problem Description

Below are the existing problems that fueled my enthusiasm for research on the above topic.

1. Life insurance valuations have not had enough impact on the economy. 2. Good valuation models improve the profitability of life insurance forms.

3. The principle of large numbers has a great impact on safety ratings.

Four. Inadequate effect of life

1.3 Purpose of the survey

The purpose of this study is to examine the impact of multiple approaches to the valuation of life insurance transactions, with particular reference to the IGI Life Enugu Office. The specific objectives of this research work are to:

1. Determining the impact of life insurance valuations on Nigeria’s economic development.

2. Determining the impact of these methods on the profitability of the life insurance business

3. To know whether the principle of large numbers has a significant impact on life insurance valuations.

4. Evaluation of different valuation approaches and their importance.

1.4 Research question

Based on the research problem and objectives, the following research questions arise.

1. Do you think life insurance valuations have had a reasonable impact on the economy? 2. Do valuation methods improve the profitability of life insurers?

3. Can the principle of large numbers play a role in the valuation of life insurance policies?

4. What is the importance of the rating model?


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