Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

A property casualty insurer receives $ 6 . 3 2 million in premiums on its homeowners MP line of insurance. The insurer s policies are

A propertycasualty insurer receives $6.32 million in premiums on its homeowners MP line
of insurance. The insurers policies are written for a 1-year term, and 9 months have
elapsed on these policies so far. The lines losses and adjustment expenses amount to
$4,436,640 so far, commissions and other expenses are $1,655,840, and dividends are
$202,240. The insurer earns $265,440 in the investment of its premiums during these 9
months. Calculate the lines loss ratio, expense ratio, dividend ratio, combined ratio (after
dividends), investment ratio, operating ratio, and overall profitability. (Do not round
intermediate calculations. Round your answers to 1 decimal place. (e.g.,32.1))

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions