All-Hands Property & Casualty Insurance Company has the following financial ratios.

2019 2018

Loss Ratio 67.8 68.1

Expense Ratio 24.2 25.1

Net Investment Yield 3.5 4.0

1. Calculate the Combined Ratio {Loss Ratio + Expense Ratio} for each year.

Combined Ratio 2019 __________ Combined Ratio 2018 ____________

2. Calculate the Overall Profitability Ratios

Overall Profitability Ratio 2019 __________________

Overall Profitability Ratio 2018 ____________________

3. Explain why the Overall Profitability Ratio Changed in 2019

Based on the Loss Ratio, Expense Ratio, and Net Investment Yield Trends.

4. The All-Hands Property & Casualty Insurance Company has been particularly concerned about increased Catastrophic Risks with Climate change, with climate change with losses because of catastrophic risks

Increasing. For its 2019 annual report, All-Hands estimated the effect of catastrophic losses on its combined ratio including loss and operating expenses to be 7.3% of these in 2019 and 8.7% in 2018.

Discuss how climate change risks affect property and how catastrophe bonds are being used to hedge against catastrophic risks that insurance companies face as discussed in the text (see pages 291 to 292 in Chapter 11, and the Module 7 lecture notes)and catastrophe-linked (CAT-linked securities (see pages 246 in Chapter 9 of the text).

5. Find an article on Environmental, Social, and Governance (ESG) mutual funds. Do a brief summary of the article. Why have ESG mutual funds grown so fast, and how has their performance compared to traditional mutual funds?