A lack of change in JN plc’s income can be addressed by reallocating the firm’s resources to its marketing and sales divisions to expand the outreach that the business has on the market.
Doing so will increase income revenue streams for the business by expanding the volume of sales made in subsequent years of operation. Again, it is critical for the firm to increase the company resources towards the accomplishment of this goal by revamping its marketing and sales division. Addressing the decline in the share of gross written premiums may also be addressed by changing the firm’s underwriting policy to make it more profitable for the business. However, this action should not be misconstrued to mean that its underwriting policy should be weakened; instead, it needs to be strengthened, but creatively by seeking the services of experienced underwriters. They should undertake this task with a careful understanding of the firm’s business operations so as not to interfere with other aspects of its operations or overall profitability.
Lastly, an increase in the percentage of reinsurance premiums for the businesses, as a negative feature of JN plc’s income statement, could be addressed by expanding the company’s customer base through the revamping of its sales and marketing plan outlined above. An increase in the number of customers would provide a bigger pool of financial resources to pay out claims. This strategy is premised on the assumption that having more clients would decrease the overall risk profile of the insurance products offered because the company would be getting increased revenue from the additional clients. Overall, it is important to adopt these recommendations to improve the overall financial stability of the business and its reputation among investors who are regular users of its financial data.