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Thousands of AnnualDataPremiumsearnedLossesincurredExpenses/commissionsDividendspaidtopolicyholdersInvestmentincomeonpremiumsDollars$35,600$26,760$9,125$600$1,525 What is the operating ratio for this line? Is the line profitable? Combined ratio after dividends =$26,760+$9,125+$600/$35,600=1.0249 or 102.49% Operating Ratio =

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Thousands of AnnualDataPremiumsearnedLossesincurredExpenses/commissionsDividendspaidtopolicyholdersInvestmentincomeonpremiumsDollars$35,600$26,760$9,125$600$1,525 What is the operating ratio for this line? Is the line profitable? Combined ratio after dividends =$26,760+$9,125+$600/$35,600=1.0249 or 102.49% Operating Ratio = Combined ratio after dividends - (Investment income/Premiums earned )=102.49%($1,525/$35,600)=0.9831, or 98.31%

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