Net Investment Gain vs Surplus Allocation
Are these two concepts related in any way? They both show up on the IEE, but I am trying to think through if they could create a question with both included? This does not seem possible to me but please let me know if you can think of anything
Comments
IEE is there to state profit by line and allocate surplus (capital) to lines. Investment gain is a part of profit. Profit-to-surplus ratio gives the return on investment of each line. This can be used to gauge efficiency in operations and capital allocation of the company.
There may be a question related to this, but historically, they usually examined IG and surplus in separate questions.