Assume the following information

1. Pinnacle Insurance Company is formed on 6/30/15 with $10MM of capital (surplus). (MM stands for million)
2. Pinnacle sells one commercial insurance policy on 9/1/15 that provides 12 months of coverage, with premium of $12MM.
3. A $4MM claim occurs in October and is paid on 11/30/15.
4. Pinnacle learns of another claim that occurred in late December 2015, which it estimates will amount to $3MM, and is subsequently paid in January 2016.
5. Expenses for the period 6/30 to 12/31/15 are $1.5MM
6. Pinnacle sells no more business in 2016.
7. $5 MM of new claims arise in 2016 of which $2.7 are paid in 2016 and the balance expected to be paid in 2017.
8. Expenses in 2016 are $2MM.i
9. Investment income in year 2015 is $1.0MM and in 2016 is $1.5MM

Answer the following questions

1. Earnings for 2015
2. Surplus at the end of 2015
3. Unearned Premium Reserve at the end of 2016
4. Claim Reserve at the end of 2016