1. Interpret the report.
2. All three insurance lines have

• different
• the same

• percentage of underwriting income to premium revenue. The differences among the insurance lines are in the way they consume administrative
• claims
• activities. The Homeowners
• Workers' Compensation
• Auto
• insurance line has the least
• highest
• profitability because it has smaller
• larger
• and more
• less
• frequent claims that require more auditing and disbursement processing than do the other two lines. In addition, the Homeowners line has a much higher rate of cancellation relative to the other two lines (over 50% of new policies). Lastly, the Homeowners line has more premium collections compared to the other two lines. Possibly, the Homeowners line is collected in smaller amounts from more customers than the other two lines. In contrast, the Homeowners
• Workers' Compensation
• Auto
• line consumes the most
• fewest

1. administrative activities, causing it to be very profitable. The Auto line is in between these two.