Fine Dining Example
Example: Columbia Steakhouse
- Gross Sales: $3,500,000
- 35% Alcohol Sales
- Closes at 11:00PM
- Has a piano player
- 0 Insurance Claims in last 5 years
- 8 Years of operations
- Active & Consistent Management
First Year Premium:
(Paid Monthly)
$
0
Profit Participation Example:
Ragnar Program Annual Collected Premiums:
$10,000,000
Total Claims Paid:
$3,000,000
Administration Expenses:
$1,470,000
***IBR Estimate:
$2,000,000
Underwriting Profit:
$3,530,000
Excess Reserve Allocation:
$1,500,000
Return to Policy Holders:
$1,530,000 (Premium Credit)
$500,000 (Dividend)
Columbia Steakhouse Participation:
3.16% ($31,621/$10,000,000)
Premium Credit:
$4,838
Dividend (Assumes 350 Members):
$1,428
Net Insurance Cost: $25,355
*Illustration only. Profits are not guaranteed and are dependent on underwriting profitability.
Actual results will vary. Dividend and Premium Credit are determined by board of directors.
***IBR – Incurred But Not Realized claims.