MANAGEMENT

Detailed explanation-1: -Valuation balance sheet is prepared by the life insurance company, or it is prepared by the actuary for the life insurance company. An Actuary is a person who evaluates risk in an insurance given by an insurance company.

Detailed explanation-2: -An insurance company makes profit or loss through set off its revenue against claims. Insurance company tries to sell their policies in market such that the total premiums collected by company in a year are set off against the total amounts of claims paid and expenses. Combined ratio = Claims+Expenses = Premium.

Detailed explanation-3: -Valuation balance sheet is a statement prepared by a life insurance company to find out the profit or loss by comparing its life assurance fund with the net liability.

Detailed explanation-4: -Profit And Loss Account (Form A‐PL) The P&L A/c is prepared to calculate the overall profit of the life insurance business.

Detailed explanation-5: -A balance sheet is calculated by balancing a company’s assets with its liabilities and equity. The formula is: total assets = total liabilities + total equity. Total assets is calculated as the sum of all short-term, long-term, and other assets.