Review the selected materials provided from $($recently acquired$)$ Infinity Property &

Casualty Corporation$$s $201710-$K filing as well as the P&C Aggregate Industry Results and use that information to a$.$ If Infinity P&C had achieved the same investment yield as the broader P&C

industry in $2017,$ keeping all else equal $($same expenses & average tax rate$),$ what

would Infinity$$s Earnings Per Share have been?

d$.$ Infinity P&C specializes in underwriting liability risks for the private passenger

auto sector. The combined ratio for this sector was $105\mathrm{.}5\%$ for $2017.$ How much

pricing flexibility does Infinity have relative to their insurance sector? In other

words, by what $\%$ could Infinity lower their insurance premiums earned and still

achieve their sector$$s combined ratio?

e$.$ We said in class that average policyholder surplus $($i$.$e$.$ shareholders$$ equity$)$ ratio

in the P&C insurance industry was $36\mathrm{.}20\%.$ How does Infinity$$s equity ratio

compare? Using the risks of P&C insurers we discussed in class, state whether

you think Infinity$$s relatively higher$/$lower equity ratio is justifienswer the following

questions