Insurance Market Analysis
Profit
Direct premium (retained earned premium
Gross premium (Earned premium)
Regulatory drivers
Tax model: large company
Premium breakdown
Re-insurance premiums paid*
Admin expenses*
Claims
Commission
Extended Group Multi
Credit
Group PA
warranty life
peril
life
32
32
32
12
12
12
32
3
ā
12
12
16
13
51
22
25
20
50
Underwriting profit/loss
52
Investment return*
10
25
25
10
21
21
52
37
46
16
14
26
10
10
Impact of current tax regime % impact % impact % impact % impact % impact
10
% of gross prem
% of direct premium
% of before-tax profit
% of underwriting profit
% of claims
26.1%
24%
12%
19%
17%
27%
24%
12%
20%
17%
43%
70%
47%
84%
47%
52%
98%
76%
143%
66%
168%
188%
24%
91%
68%
Impact new MI tax regime
% impact % impact % impact % impact % impact
% of gross prem
0.7%
1%
1%
1%
1%
% of direct premium
1%
1%
1%
1%
1%
% of before-tax profit
1%
4%
2%
5%
2%
% of underwriting profit
1%
5%
4%
9%
2%
% of claims
5%
10%
1%
6%
3%
Current tax impact
12-27% of direct premium for large co (6)
to 21% for small company)
43% to 84% of before-tax profit for large
firm (46% to178% of before-tax profit
for small firm)
25% to 188% of claims for large firm
(13% to 144% for small firm)
New Tax regime:
Tax burden per product line is between
16 to 35 times lighter for large company
and between 9 to 30 times for small
company
1% of direct premium
1% to 5% of before-tax profit for large
firm (1% to 14% of small co)
5% to 10% of claims for large firm (1% to
9% for small co)View entire presentation