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If the loss ratio on a line of property insurance is 76 percent, the loss adjustment expense is 13.4 percent, and the ratio of commissions

If the loss ratio on a line of property insurance is 76 percent, the loss adjustment expense is 13.4 percent, and the ratio of commissions and other acquisitions expenses is 15 percent, and investment yields are 9%, is this line profitable?

A.

Yes, because the combined ratio is 95.4%.

B.

No, because the combined ratio is 95.4%.

C.

No, because the combined ratio is less than 95.4%

D.

Yes, because the combined ratio is less than 95.4%.

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