A property–casualty insurer brings in $ 6.25 million in premiums on its homeowners MP line of insurance. The line’s losses amount to $ 4,343,750, expenses are $ 1,593,750, and dividends are $ 156,250. The insurer earns $ 218,750 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 QuestionsA 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 ...An insurance company collected $ 12.75 million in premiums and disbursed $ 9.18 million in losses. Loss adjustment expenses amounted to 20.1 percent and dividends paid to policyholders totaled 5 percent. The total income ...Explain the difference between the investing and investment banking activities performed by securities firms and investment banks.Using Table which type of security accounts for most underwriting in the United States? Which is likely to be more costly to underwrite: corporate debt or equity? Why? XYZ, Inc., has issued 10 million new shares of stock. An investment bank agrees to underwrite these shares on a best efforts basis. The investment bank is able to sell 8.4 million shares for $ 27 per share, and it charges ...
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