A general insurer invests the cash received from premiums because of the time between the collection of premiums and the payment of claims.Their primary objective in managing this investment portfolio is:

Question

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The general insurer's investment portfolio management must consider all three objectives - liquidity, solvency and profitability. Liquidity is essential to pay claims and meet policyholder obligations promptly. Solvency is critical to meet regulatory compliance and maintain financial stability. Profitability is important to generate returns on investment and enhance shareholder value. Therefore, managing their investment portfolio effectively with a balance between these three objectives is crucial for the insurer's success.

A General Insurer Invests the Cash Received from Premiums Because