FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A property-casualty (PC) insurer reports $430MM losses on fire insurance, $595MM earned premiums, and $95MM loss adjustment expenses. What is the PC insurer's combined ratio?

A property-casualty (PC) insurer reports $430MM losses on fire insurance, $595MM earned premiums, and $95MM loss adjustment expenses. What is the PC insurer's combined ratio?

A. 0.88, indicating that this PC insurer is profitable.
B. 1.12, indicating that this PC insurer is profitable.
C. 0.88, indicating that this PC insurer is unprofitable.
D. 1.12, indicating that this PC insurer is unprofitable.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Personal Finance

Personal Finance

Authors: E. Thomas Garman, Raymond E. Forgue, Jonathan Fox

14th Edition

0357901495, 9780357901496

More Books

Students also viewed these Finance questions

Question

★★★★★
A company wants to raise $500 million in a new stock issue. Its investment banker indicates that the sale of new stock will require 8 percent under pricing and a 7 percent spread. (Hint: the...

Answered: 1 week ago

Question

★★★★★
Why would you want to filter the date field before loading data into your model for analysis?

Answered: 1 week ago

Question

★★★★★
A Harris (Feb. 2013) poll found that one-third of Americans (33%) believe finding and picking up a penny is good luck. Assume that the true proportion of all Americans who believe finding and picking...

Answered: 1 week ago

Question

★★★★★
In keeping with a modernization of corporate statutes in its home state, UMC Corporation decided in 2011 to discontinue accounting for reacquired shares as treasury stock. Instead, shares repurchased...

Answered: 1 week ago

Question

★★★★★
A property-casualty (PC) insurer reports $430MM losses on fire insurance, $595MM earned premiums, and $95MM loss adjustment expenses. What is the PC insurer's combined ratio? A. 0.88, indicating that...

Answered: 1 week ago

Question

★★★★★
Bayani Bakery's most recent FCF was $45 million; the FCF is expected to grow at a constant rate of 6%. The firm's WACC is 10%, and it has 15 million shares of common stock outstanding. The firm has...

Answered: 1 week ago

Question

★★★★★
Billie is a full-time exempt employee in Providence, Rhode Island, and is paid biweekly. She earns $44,750 annually and indicated married filing jointly with checkbox withholding on her 2021 Form...

Answered: 1 week ago

Question

★★★★★
What is speculative stock? Multiple Choice Extra inventory that is held in anticipation of future demand decreases An instrument for a marketing team to increase sales Stock needed to protect...

Answered: 1 week ago

Question

★★★★★
As part of a major renovation at the beginning of the year, Bonham's Bakery sold shelving units (store fixtures) that were 13 years old for $2,300 cash. The original cost of the shelves was $7,000...

Answered: 1 week ago

Question

★★★★★
Bramble Hardware Store inc. Completed the following merchandising transactions in the month of May 2018. At the beginning of Ma Bramble's ledger showed Cash of $8,300 and Common Shares of $8,300. May...

Answered: 1 week ago

Question

★★★★★
a)Discuss how capital budgeting differs between domestic-only and multinational corporations. b) Briefly describe the two approaches we used for a multinational corporation and how they determine...

Answered: 1 week ago

Question

★★★★★
Draft a proposal for a risk assessment exercise.

Answered: 1 week ago

Question

★★★★★
Understand the business case for equal opportunities and be able to identify how it applies in differing organisations.

Answered: 1 week ago

Question

★★★★★
Assess the implications of putting a policy into practice and evaluating the success of initiatives in this area.

Answered: 1 week ago

Previous Question Next Question