accounting

[Froshdy]

What are the main differences between the financial statements of the following businesses Insurance&Banking ?

[AKMild]

Very generally speaking:-

Banking

Income is from interest and fees
Assets are loans to customers and physical cash
Liabilities are deposits from customers
Contingent liabilities (off balance sheet) are things like letters of credit and guarantees and various financial derivatives.


Insurance

Income is from premiums
Assets are investments
Liabilities are unsettled claims


I suggest you compare the financial statements of a publicly-quoted bank with those of a publicly-quoted insurance company and look at the headings on the Profit & Loss accounts and Balance Sheets