Excerpts from the profit & loss statement of an insurance company
Revenues
Premiums Written		212,800,000
Premiums earned		(212,800,000 1,000,000)
Investment Income
Interest		12,000,000
Dividends		2800,000
Rental Income		612,000
Gain on Sale of Securities		1,000,000
Expenses
Net Losses Incurred		182,100,000
Loss-Adjusted Expenses		12,000,000
Commissions		18,000,000
Premium Taxes		5,821,000
General Insurance Expenses		42,890,000

Calculate the following ratios based on the data shown in the profit and loss statement (Note: Marks will not be awarded if you do not interpret your results).

1. Loss ratio (1.5 Mark)
2. Expense ratio (1.5 Mark)
3. Combined ratio (1.5 Mark)
4. Investment income ratio (1.5 Mark)
5. Overall operating ratio (1.5 Mark)
6. Assume that the insurance company in this question uses the experience rating method to charge the premiums for all the policies. For a particular policy, if the annual premiums are Rs 82,100, the expected loss ratio is 48 percent, and the credibility factor is .22. What will be the reduction/increase in the premium and what will be the premium for the next policy year? (1.5 Marks)
7. Assume that the insurance company in this question wrote 7128000 policies. What would be the pure premium? (1 Marks)