Question
For last calendar year, a property insurer reported the following financial information for a specific line of insurance Premiums written $25,000,00 Expenses incurred $5,000.000 Incurred
For last calendar year, a property insurer reported the following financial information for a specific line of insurance
Premiums written $25,000,00
Expenses incurred $5,000.000
Incurred losses and loss adjustment expenses $14,000,000
Earned premiums $20,000,000
A. What was the insurers loss ratio for this line of coverage
B. Calculate the expense ratio for this line of coverage
C. What was the combined ratio for this line of coverage
D. A large casualty insurer writes a substantial amount of private passenger auto insurance. An actuary analysed claims data for a specific class of drivers for a recent one-year policy period. The claims data showed that the insurer paid out $30 million for incurred losses and loss-adjustment expenses for each 100.000 cars insured for one year. Based on the pure premium method, calculate the pure premium.
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