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, dividend ratio, combined ratio, investment ratio, operating ratio, and overall profitability.
Answer to relevant QuestionsCalculate the following: a. If the loss ratio on a line of property insurance is 73 percent, the loss adjustment expense is 12.5 percent, and the ratio of commissions and other acquisitions expenses is 18 percent, is this ...In what ways are securities firms and investment banks financial intermediaries?What is the difference between pure arbitrage and risk arbitrage? If an investor observes the price of a stock trading in one exchange to be different from its price in another exchange, what form of arbitrage is applicable ...What was the significance of the National Securities Markets Improvement Act of 1996? What is a mutual fund? In what sense is it a financial institution?
Post your question