Loss Ratio vs. Combined Ratio: What’s the Difference?

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. … Read more

Reinsurance Sidecar Definition

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 … Read more

Corvex Management: An Activist Investor Analysis

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. … Read more

Net Investment Definition

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 … Read more

Evaluating Your Personal Financial Statement

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 … Read more