For the past calendar year, the casualty insurance company Pillow reported the following financial information for a specific line of insurance:

Incurred losses – $120 million
Underwriting expenses – $45 million
Premiums earned – $340 million
Premium written – $420 million
Loss adjustment expenses – $0.5 million
Net investment income – $22 million

Is this insurance company profitable? Explain your answer. What is the measure you used to arrive at your answer?