Health insurance company trying to expand its operations

Assignment Help Finance Basics
Reference no: EM13828384


MutualOne is a regional player in the group health market in the north eastern United States. As such, most of the current book of business is in the 2-to-500 size market with a smaller portion in the 500-to-3000 size market. Nearly all of MutualOne's group life business was sold as an add-on to their medical sales. Management has decided to grow via acquisitions in the ancillary product lines of dental, group short-term disability and group life. Therefore, the group life department is completing an assessment of their assumption-setting process in preparation for an impending acquisition.

You are an actuarial student in the group life department of MutualOne, an insurance company in the United States. Most of your communication is directed to your immediate supervisor, so it should be well written but not overly formal. Because you will soon be rotating to a different department at MutualOne, it is important that you document any sources for your work.

Your supervisor, Bob, needs to present a summary of the group life assumption-setting process to management, who may be less familiar with the life products. He has asked you to write a brief summary describing the three major categories of assumptions used by actuaries (economic, demographic and experience-based) as they relate to group life claim cost projections.

Additional Information:

The scenario is from Finance. The scenario is discuss about a health insurance company which wants to expand its operations. The company is looking for acquisitions as well as wants to assess different options open to it. You need to assumptions employed by actuaries (economic, demographic and experience-based) as they relate to group life claim cost projections. Find the rest of the details in the solution. Please find out the excel sheets for data upon assumptions and pricing.

Total Word Limit: 1605 Words

Reference no: EM13828384

What is the difference in the benefit vintner will realise

If the interest rate is 7%, what is the difference in the benefit the vintner will realise if he releases the wine after barrel aging it for one year, or if he releases the

Mark sexton and todd story

Mark Sexton and Todd Story, the owners of S&S Air, have decided to expand their operations. They instructed their newly hired financial analyst, Chris Guthrie, to enlist an un

What is b2bs wacc if the firm faces an average tax rate of

Suppose that B2B, Inc., has a capital structure of 36 percent equity, 16 percent preferred stock, and 48 percent debt. Assume the before-tax component costs of equity, preferr

What is the average annual fee as a percent paid by investor

A mutual fund charges a 5% upfront load plus reports an expense ratio of 1.34%. If an investor plans on holding a fund for 30 years, what is the average annual fee, as a perce

Calculate barbow after-tax weighted average cost

Quantitative Exercises Barbow Enterprises, Inc., is considering an expansion in their operations. One of the first items they want to examine is their cost of capital. Accor

Comparing long and short term financing

In business the need of loan is always there. You need to purchase land, machinery, construction of the work shed. This type of expenditure requires long term finance.

Foreign country and analyze its monetary system

Select a foreign country and analyze its monetary system. Research the country's monetary system using at least five scholarly sources, including a minimum of three from the

What is the firm expected rate of return

Everrest Inc.'s stock has a 53% chance of producing a 14.25% return, a 25% chance of producing a 27.50% return, and a 22% chance of producing a -4.25% return. What is the f


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd