Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A property-casualty insurer brings in $$ 6.20$ million in premiums on its homeowners MP line of insurance. The line's losses amount to $$ 4,278,000$, expenses
A property-casualty insurer brings in $\$ 6.20$ million in premiums on its homeowners MP line of insurance. The line's losses amount to $\$ 4,278,000$, expenses are $\$ 1,550,000$, and dividends are $\$ 124,000$. The insurer earns $\$ 186,000$ in the investment of its premiums. Calculate the line's 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 ))
\begin{tabular}{|l|l|l|}
\hline Loss ratio & $\%$ \\
\hline Expense ratio & & $\%$ \\
\hline Dividend ratio & & $\%$ \\
\hline Combined ratio & & $\%$ \\
\hline Investment ratio & & $\%$ \\
\hline Operating ratio & & \\
\hline Overall profitability & & \\
\hline
\end{tabular}.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started