Question: Please provide Handwritten answer Year 1 Year 2 Year 3 Premiums 120 110 100 Investment Income 0 10 20 Claims 55 55 100 Expenses 75

Please provide Handwritten answer

Year 1 Year 2 Year 3 Premiums 120 110 100 Investment Income 0 10 20 Claims 55 55 100 Expenses 75 5 Solvency Reserve 100 125 Benefit Reserve 50 60 DAC 70 40 Required Capital 5 10 Assume reserves, DAC, and required capital are EOY amounts No taxes Required capital investment income rate = 0% Calculate the ROE (as percentage) at the end of year 1
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