Question
The U.S. Property/Casualty Insurance Industry had the following profitability ratios for the last two years based on the first 6-months for each year: 2020 2019
The U.S. Property/Casualty Insurance Industry had the following profitability ratios for the last two years based on the first 6-months for each year:
2020 2019
Net Loss Ratio 68.6% 70.0%
Expense Ratio 27.5 % 27.1%
Net Investment Yield 3.15% 3.47%
--------------------------------------------------------------------------------------------
- Calculate the Combined Ratio {Loss Ratio + Expense Ratio} for each year.
Combined Ratio 2020 __________ Combined Ratio 2019 ____________
- Calculate the Overall Profitability Ratios = {100% - Combined Ratio]+ Net Investment Yield}
Overall Profitability Ratio 2020 __________________
Overall Profitability Ratio 2019 ____________________
- Explain why the Overall Profitability Ratio Changed in 2020
Based on the Loss Ratio, Expense Ratio, and Net Investment Yield Trends.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Gapenskis Understanding Healthcare Financial Management
Authors: George H. Pink, Paula H. Song
8th Edition
1640551093, 978-1640551091
