An insurance company has the following ratios:

Loss ratio = 0.879

Expense ratio = 0.112

Combined ratio = 0.991

Investment income ratio = 0.06

Overall operating ratio = 0.931

Which of the following statements is correct?

Select one:

a. The insurance company had an overall profit even though it lost money on its underwriting operations, but its investment income has offset the underwriting loss.

b. The insurance company had an overall profit, because it had a favourable underwriting experience and a favourable investment experience.

c. The insurance company had an overall loss because it lost money on its underwriting operations, and its investment income did not offset the underwriting loss enough to make a profit.