For the past calendar year, a property insurer reported the following financial information for a specific line of insurance:
Premiums written.................. $25,000,000
Expenses incurred.................. 5,000,000
Incurred losses and loss-adjustment expenses...... 14,000,000
Earned premiums ................. 20,000,000
a. What was the insurer's loss ratio for this line of coverage?
b. Calculate the expense ratio for this line of coverage.
c. What was the combined ratio for this line of coverage?