How do I include an acquisition in a loss projection analysis?

When considering a loss projection analysis for a client with a recent acquisition, it is best to include the recent history for the acquired entity if possible. It is critical that this history include both loss and exposure data. If exact exposure data is not available, a reasonable approximation is sufficient as long as exposures are included for any period where losses are included for the acquired entity.

When preparing the loss projection, you can combine the client and acquired entity's data by policy year. The ensuing pure loss rates will be an appropriate projected loss rate for the combined entity.

For more info, see the related FAQ: 

My client has acquired another company. Would separate or combined loss projections be best?