Finish it within an hour

Property and Casualty Insurance Companies vs. Life Insurance Companies

Like property and casualty insurance businesses, life insurance companies also need to optimize their capital, to produce the best returns on equity for their shareholders.

However, while there are certain common issues that face both types of insurance companies, they have different importance. And there are other issues that only face one kind of insurance company, but not the other.

The Twenties Property and Casualty Insurance, Inc. is now considering acquiring a company that sells only life insurance policies, to a broad population.

With reference to your previous memo (In-Class Test Part 1), write the body text for another memo to the CEO (minimum of 100 words, no maximum), comparing and contrasting the factors to be considered in establishing the optimal level of capital for this new life insurance subsidiary. The memo has to be based on risks.

You should focus on the similarities and differences between a property and casualty insurance business and a life insurance business.

The better you identify why certain factors are the same, and why others are more relevant and/or important to one type of insurance company than the other, the better your grade.