Investigating the financial status of Cooperative Insurance Company

According to the financial news report, quoted by the public relations of Cooperative Insurance, quoted by the economy page, in August of this year, the total production premiums of Cooperative Insurance Company reached the amount of 4,574 billion rials. Cooperative Insurance Company has experienced an average of 25% monthly growth this year. In July this year, the company had generated 3,656 billion Rials in insurance premiums.

Reduction of damage ratio
The loss ratio of Cooperative Insurance Company did not exceed 47% this year. This is despite the fact that the company’s loss ratio was always above 65% last year. In April of this year, the company’s loss ratio reached 43%, May 47%, June 45%, July 46%, and this August it reached 47%. This fluctuation is a normal routine in the insurance industry and it is a sign of timely payment of damages to customers. But the figure below 50% is considered very favorable for insurance loss ratios.

Adequate cash balance
Cash Balance of Cooperative Insurance In the latest report of the company’s financial statements, it was announced that the company had one thousand and 995 billion Rials in cash balance in June this year, which is 12% of the company’s total assets.

Cash balance is therefore important for any company and any balance sheet. A high cash balance allows paying off debts, reinvesting in the company, returning money to shareholders, paying expenses and creating a buffer against future financial challenges. In fact, the company’s cash flow Cooperation has been associated with significant growth in the monthly period. In March 2019, the company’s cash balance was only 3% of the company’s total assets. In Esfand 1400, 22% of the total assets were cash balance, and in the first quarter of this year, only 11% of the company’s assets were cash balance, which, considering the passage of three months of the year and liquidity management, shows the company’s attention to reducing risks. There is a possibility of participation. Cash flow is used to determine the quality of the company’s income, that is, how liquid the company’s assets are, which can indicate whether the company can use these assets to meet its current obligations in the shortest possible time if needed.

Total property rights
In every balance sheet, there are two parts, liabilities and assets. If the weight of the company’s payables is high in the debt section, it indicates the company’s problems. In June of this year, the total payable debts of cooperative insurance reached 14%, which is a suitable figure for any company. Also, 35% of the company’s debt was allocated to the company’s ownership rights, which reached the figure of five thousand and 96 billion rials, which is professionally suitable for the company’s major shareholders and shows the special values ​​of the company.