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4. Using the data below calculate the total loss ratio for 2006 and explain the change in total loss ratio between 2005 and 2006. Show
| 4. Using the data below calculate the total loss ratio for 2006 and explain the change in total loss ratio between 2005 and 2006. Show your work. | |||||||
| Territory | 2005 Earned Premium Distribution | LR for Acc Year Ending 2005 | 2006 Earned Premium Distribution | LR for Acc Year Ending 2006 | |||
| 1 | 15% | 0.8830 | 15% | 0.8750 | |||
| 2 | 35% | 0.9420 | 50% | 0.9380 | |||
| 3 | 25% | 0.8360 | 20% | 0.8340 | |||
| 4 | 25% | 0.8280 | 15% | 0.8250 | |||
| TOTAL | 100% | 0.8782 | 100% | ? | |||
| LR = Loss Ratio= Losses/Premium. | |||||||
| Losses = LR * Premium | |||||||
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A Practical Guide To Quantitative Finance Interviews
Authors: Xinfeng Zhou
1st Edition
1735028800, 978-1735028804
