A propertycasualty insurer brings in $ 5.55 million in premiums on its homeowners multiple line of insurance.

Question:

A property–casualty insurer brings in $ 5.55 million in premiums on its homeowners multiple line of insurance. The line’s losses amount to $ 3,962,700, expenses are $ 1,526,250, and dividends are $ 333,000. The insurer earns $ 349,650 in the investment of its premiums. Calculate the line’s loss ratio, expense ratio, ratio, combined ratio, investment ratio, operating ratio, and overall profitability.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...