An insurance companys projected loss ratio is 64.8 percent and its loss adjustment expense ratio is 25.6

Question:

An insurance company’s projected loss ratio is 64.8 percent and its loss adjustment expense ratio is 25.6 percent. The company estimates that commission payments and dividends to policyholders will be 6 percent. What must be the minimum yield on investments to achieve a positive operating ratio?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Markets and Institutions

ISBN: 978-0077861667

6th edition

Authors: Anthony Saunders, Marcia Cornett

Question Posted: