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A property–casualty insurer brings in $7.5 million in premiums on its homeowners multiple line of insurance....

A property–casualty insurer brings in $7.5 million in premiums on its homeowners multiple line of insurance. The line’s losses amount to $4,862,700, expenses are $2,026,150, and dividends are $222,300. The insurer earns $249,650 in the investment of its premiums. Calculate the line’s: a) loss ratio b) expense ratio c) dividend ratio d) combined ratio e) investment ratio f) operating ratio g) overall profitability

how profitable is the line

Solutions

Expert Solution

Line is Earning Total Profit of $638500, (Total Income-Operating Expenses)= (7500000+249650-4862700-2026150-222300), as a result gross margin stands at 8.51%, (638500/7500000).

jeff jeffy answered 2 years ago
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