A propertycasualty insurer brings in ($6.25) million in premiums on its homeowners multiple peril line of insurance.

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A property–casualty insurer brings in \($6.25\) million in premiums on its homeowners’

multiple peril 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 \($218,750\) on the investment of its premiums. Calculate the line’s loss ratio, expense ratio, dividend ratio, combined ratio, investment ratio, operating ratio, and overall profitability.

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Financial Institutions Management A Risk Management Approach

ISBN: 9781266138225

11th International Edition

Authors: Anthony Saunders, Marcia Millon Cornett, Otgo Erhemjamts

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