Gross Profits for Insurance companies?

Water Cooler Investing
#1

Would anyone know how to find the Cost of Services (like COGS) for an insurance company?

I’m struggling to work out how to calculated Gross Profit (Revenue - Cost of Services) for this type of company?

Thanks

#2

The biggest thing you’ll want to look at is the increase in policyholder liabilities. That’s about the closest thing to a CoGS for a life insurer. Profitability also depends on actual vs. expected actuarial assumptions.

#3

Thanks for the reply… I’ve copied all the expenses after revenue on the income statement. This is just and exercise.

I know that goodwill impairment is not included but what about ‘staff related expenses’, or ‘fees and commission expenses’ and ‘Financeial costs’ ? Wouldn’t these be something included in the cost of bringing a particular service to the table?

Life insurance contract claims expense Life insurance contract premium ceded to reinsurers Fees and commission expenses Staff and related expenses Goodwill impairment Other operating expenses Finance costs Movement in external unitholder liabilities Change in policyholder liabilities – life insurance contracts – investment contracts