An insurance company has he following annual data:

Annual Data

Premiums Earned $ 35,600,000

Losses Incurred $ 26,760,000

Expenses/Commissions $ 9,125,000

Dividends paid to policyholders $ 600,000

Investment income on premiums $ 1,525,000

A) What is the combined ratio after dividends for this line? Are the premiums sufficient to

generate profitability for this line? Why or Why not?

B) What is the operating ratio for this line? Is the line profitable?

C) Everything else constant, what is the maximum expected loss ratio that would yield a

profitable line after including investment income?