The Cost Layers at Larkspur Assurance

profitability

What this case is about

Your client is Larkspur Assurance, a diversified US insurer with a broad portfolio of insurance products. Its annual net income is $6 billion, down 2 percent from last year. The board wants to understand the decline and identify actions to improve earnings.

Objective

Establish why net income is falling despite revenue growth, quantify the main cost pressures, and recommend practical actions to improve profitability.

Skills this case tests

Structuring the problem
Working the numbers
Reading the data
Judgement and recommendation

This is an interview practice scenario. Figures in the brief are case inputs, not current market research.