I. Asset-liability ratio = liabilities/assets;
Secondly, insurance companies charge premiums first and then provide services, which is equivalent to paying in advance. Only after the contract expires, that is, after the insurance expires in that year, the premium can be carried forward from the liabilities and then included in the income. Similar to real estate, money from selling houses can only be counted as accounts received in advance. Only when the house comes down and all the formalities are completed can it be completely counted as a sale, and then the income can be carried forward.
Therefore, the asset-liability ratio of insurance companies is generally high.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.