Typically, a Property and Casualty Insurance company, also known to as Short Term Insurance Company or non life Insurance Company covers businesses and individuals against losses caused by unfortunate events. The businesses and individuals pass on the risks to the insurers in return of a consideration known in insurance as a premium. Ideally, Insurance companies should be able to pay claims for those clients who suffer losses, meet administrative expenses and remain with a surplus (profit). The difference in times between receiving the premium and the payment of losses gives Property and Casualty (P and C) companies a room for investing the premiums to earn a return on investment, which effectively add to the profitability of the company. Therefore, the performance of the company in terms of profitability is affected by the performance of its investment besides the performance in terms of operations.
Obert Kwacha is a holder of a Bachelor of Commerce honors degree in Risk Management and Insurance, a Master of Science degree in Finance and Investments, and a Diploma in Insurance with the Chattered Institute of Insurance, (UK). This current work was done in partial fulfillment of the masters degree in Finance and Investments.
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LAP LAMBERT Academic Publishing
Investments, underwriting profit, insurance companies financial management, investment income
BUSINESS & ECONOMICS / Production & Operations Management