An insurance companys projected loss ratio is 77.5 percent and its loss adjustment expense ratio is 12.9

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An insurance company’s projected loss ratio is 77.5 percent and its loss adjustment expense ratio is 12.9 percent. The company estimates that commission payments and dividends to policyholders will be 16 percent. What must be the minimum yield on investments to achieve a positive operating ratio?
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Financial Institutions Management A Risk Management Approach

ISBN: 978-0071051590

8th edition

Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders

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