Loss Ratio vs. Combined Ratio: An Overview The loss ratio and combined ratio are used to measure the profitability of an insurance company. The loss ratio measures the total incurred losses in relation to the total collected insurance premiumswhile the combined ratio measures the incurred losses and expenses in relation to the total collected premiums….
What Is a Reinsurance Sidecar? A reinsurance sidecar is a financial entity that solicits private investment in a quota share treaty with an insurance company. In the quota treaty the ceding company and reinsurer share premiums and losses according to a fixed percentage. Investors who take part in reinsurance sidecars share in premiums and losses…
Corvex Management is a New York-based hedge fund that was launched with much fanfare in 2011 by noted investor Keith Arlyn Meister. By 2013, the fund’s assets had more than doubled. However, after reaching a peak in mid-2015, assets under management steadily declined, as the company’s value-based investing approach delivered mixed results over the years….
What Is a Flotation Cost? Flotation costs are incurred by a publicly-traded company when it issues new securities and incurs expenses, such as underwriting feeslegal fees, and registration fees. Companies must consider the impact these fees will have on how much capital they can raise from a new issue. Flotation costs, expected return on equitydividend…
What Is Net Investment? Net investment is the total amount of money that a company spends on capital assetsminus the cost of the depreciation of those assets. This figure provides a sense of the real expenditure on durable goods such as plants, equipment, and software that are being used in the company’s operations. Key Takeaways…
What Is Buyout? A buyout is the acquisition of a controlling interest in a company and is used synonymously with the term acquisition. If the stake is bought by the firm’s management, it is known as a management buyout and if high levels of debt are used to fund the buyout, it is called a…
Alphabet Inc. (GOOGL) stock set its all-time intraday high of $1,530.73 on Feb. 19 and then traded as low as $1,037.00 on March 18. This puts the stock deep into bear market territory at 30.2% below the high. The stock fell below its annual pivot at $1,408.56 but held its semiannual and quarterly value levels…
Netflix, Inc. (NFLX) stock set its all-time intraday high of $392.95 on Feb. 19 and then traded as low as $290.25 on March 17. This put the stock into correction territory at 15.3% below the high. The stock fell below its annual pivot at $314.45 on recent weakness but stayed well above its March monthly…
Month after month, many individuals look at their bank and credit card statements and are surprised that they spent more than they thought they did. To avoid this problem, one simple method of accounting for income and expenditures is to have personal financial statements. Just like the ones used by corporations, financial statements provide you…