Question 10 - Across more than one Learning Outcome (30 marks) You are a newly appointed financial officer for JN DAC, an insurer, which underwrites liability insurance. You are provided with the following income statements for JN DAC: Income statements for the years ending 31st December. Income 2020 2019 E'000's E'OOO's Gross written premium 105,000 120.000 Outward reinsurance premium 10,500) 6,000 Net written premium 94,500 14,000 Net eamed premium 82,500 85.000 Net investment return 4,500 2,500 Total income 87,000 17,500 Expenses 2020 2019 '000's E'000's Gross claims incurred 50,000) 65,000) Reinsurers' share .000 Claims incurred net of reinsurance 43,000) 61,000 Acquisition costs 15,500) 18,000) Other operating expenses 20,000) 32,000) Total expenses 78,500) 111,000) Profit 8,500 23,500) Note: Figures in brackets are negative. a) Discuss three negative features arising from the interpretation of JN DAC's income statements. There is no requirement to show calculations or workings. (15 marks) b) Identify, with justification, one possible cause for each of the negative features discussed in (a) above. (9 marks) C) Recommend, with reasons, one action to manage each of the negative features discussed in (a) above. (6 marks)