Question: Part 2. Computational Analysis In each of the problems below, provide the details/data required. Show your solutions in good form. (20 marks) Below is the

Part 2. Computational Analysis In each of the problems below, provide the details/data required. Show your solutions in good form. (20 marks)

Below is the Income and Expense Statement of Mars Insurance Company

Mars Insurance Company

Income and Expense Statement

January 1, 2021December 31, 2021

In computing pure premium, gross rate and rate change, assume that the number of exposures of Mars Insurance Company is 1,200,000 units and their expected loss is 40%

Using the statement above, compute for the following given financial performance indicators. Refer to the formula box given below.

Ratios	MARKS
1. Loss Ratio	3 marks
2. Expense Ratio	3 marks
3. Combined Ratio	3 marks
4. Investment Income Ratio	3 marks
5. Over-all Operating Ratio	3 marks
6. Pure Premium	3 marks
7. Gross Rate	2 marks

Rubrics

(2 marks for steps 1 mark for the correct answer)

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