A propertycasualty insurer brings in $ 6.25 million in premiums on its homeowners MP line of insurance.

Question:

A property–casualty insurer brings in $ 6.25 million in premiums on its homeowners MP line of insurance. The line’s losses amount to $ 4,343,750, expenses are $ 1,593,750, and dividends are $ 156,250. The insurer earns $ 218,750 in the investment of its premiums. Calculate the line’s loss ratio, expense ratio, ratio, combined ratio, investment ratio, operating ratio, and overall profitability.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...