The Fruitvale Branch of Manzana Insurance

1] The Fruitvale branch of Manzana Insurance is performing very poorly according to the case and the supporting exhibits given. Its financial profitability and market share have been steadily declining along past few financial quarters.

Starting from 4th quarter in 1989 (when the branch profit reduced from $1,885,000 to $1,238,000), it has been steadily on a streak of declined profit all along and it has lost $174,000 and $121,000 in the first two quarters in 1991.

With almost no change in net underwriting revenue, the ordinary insured losses have increased significantly at 54.5% (from $4,176,000 in Q1 in 1989 to $6,453,000 in Q2 in 1991) alongside the operational expenses increasing at 16.6% (from $1,238,000 in Q1 in 1989 to $1,443,000 in Q2 in 1991). [All the numerical data has been deduced from Exhibit 5, shown in Table 1] 

Table 1: