Company Valuation Under IFRS : Interpreting and Forecasting ...

Chapter Six – The awkward squad
2. Sundance - Commercial business
Year 1997 1998 1999 2000 2001 2002 2003
Gross written premiums 5,907 6,093 6,023 6,529 6,820 7,093 7,365
Reinsured premiums (427) (627) (603) (276) (284) (293) (305)
Net written premiums 5,480 5,466 5,420 6,253 6,537 6,800 7,060
Net earned premiums 5,397 5,419 5,404 6,125 6,406 6,664 6,919
Net claims (5,000) (4,373) (5,241) (5,408) (5,530) (5,582) (5,598)
Net operating expenses (1,392) (1,399) (1,360) (1,525) (1,630) (1,639) (1,634)
Underwriting result (995) (353) (1,197) (808) (755) (556) (313)
Growth in written premiums 3.1% -1.1% 8.4% 4.5% 4.0% 3.8%
Retention ratio 92.8% 89.7% 90.0% 95.8% 95.8% 95.9% 95.9%
Earned/net written premiums 98.5% 99.1% 99.7% 98.0% 98.0% 98.0% 98.0%
Loss ratio 92.6% 80.7% 97.0% 88.3% 86.3% 83.8% 80.9%
Expense ratio 25.8% 25.8% 25.2% 24.9% 25.5% 24.6% 23.6%
Combined ratio 118.4% 106.5% 122.2% 113.2% 111.8% 108.3% 104.5%
Reserves 10,370 9,258 9,939 10,256 10,488 10,585 10,616
Reserves/Net earned premiums 192.1% 170.8% 183.9% 167.5% 163.7% 158.8% 153.4%
Year 2004 2005 2006 2007 2008 2009 2010
Gross written premiums 7,633 7,896 8,142 8,413 8,681 8,974 9,295
Reinsured premiums (318) (335) (352) (368) (382) (394) (403)
Net written premiums 7,314 7,561 7,790 8,045 8,300 8,581 8,892
Net earned premiums 7,168 7,410 7,634 7,884 8,134 8,409 8,714
Net claims (5,947) (6,291) (6,291) (6,344) (6,758) (7,139) (7,244)
Net operating expenses (1,698) (1,759) (1,736) (1,723) (1,830) (1,911) (1,973)
Underwriting result (476) (641) (392) (182) (455) (642) (503)
Growth in written premiums 3.6% 3.4% 3.1% 3.3% 3.2% 3.4% 3.6%
Retention ratio 95.8% 95.8% 95.7% 95.6% 95.6% 95.6% 95.7%
Earned/net written premiums 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0%
Loss ratio 83.0% 84.9% 82.4% 80.5% 83.1% 84.9% 83.1%
Expense ratio 23.7% 23.7% 22.7% 21.9% 22.5% 22.7% 22.6%
Combined ratio 106.6% 108.6% 105.1% 102.3% 105.6% 107.6% 105.8%
Reserves 11,277 11,931 11,930 12,030 12,817 13,539 13,737
Reserves/Net earned premiums 157.3% 161.0% 156.3% 152.6% 157.6% 161.0% 157.6%
313