With the following information develop the Annual Income Statement for Safe and Secure Insurance Company for year ended December 31, 2021. (3 points) Clearly write out all parts of the Income Statement. Hint - not all the information provided may be needed

Loss Reserves $15,000,000

Loss Adjustment expenses $2,500,000

Premiums Written $60,000,000

Commissions Payable 2,000,000

Net Losses Incurred $43,500,000

Investment income $5,000,000

Premiums Receivable $2,000,000

Underwriting expenses $15,500,000

Total Bonds Held $10,000,000

Federal Income Tax $600,000

Cash $200,000,000

Premium Earned $59,000,000

Safe and Secure Insurance Company

Income Statement year ended Dec. 31, 2021

Revenues:

Expenses:

Net Income:

2. Based on the information in Question 1. above calculate the Loss Ratio and the Combined Ratio (2 points). Comment on the profitability of the company. (1 point)