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A propertycasualty insurer brings in $6.20 million in premiums on its homeowners MP line of insurance. The lines losses amount to $4,278,000, expenses are $1,550,000,

A propertycasualty insurer brings in $6.20 million in premiums on its homeowners MP line of insurance. The lines 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. Complete the table below by calculating the lines loss ratio, expense ratio, dividend ratio, combined ratio (after dividends), investment ratio, operating ratio, and overall profitability.

A.

Loss ratio 69%
Expense ratio 25%
Dividend ratio 2%
Combined ratio 96%
Investment ratio 3%
Operating ratio 95%
Overall profitability 7%
B.

Loss ratio 69%
Expense ratio 25%
Dividend ratio 2%
Combined ratio 96%
Investment ratio 3%
Operating ratio 93%
Overall profitability 7%
C.

Loss ratio 69%
Expense ratio 25%
Dividend ratio 2%
Combined ratio 96%
Investment ratio 5%
Operating ratio 93%
Overall profitability 7%
D.

Loss ratio 69%
Expense ratio 25%
Dividend ratio 2%
Combined ratio 93%
Investment ratio 3%
Operating ratio 96%
Overall profitability 7%

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