Question
In: Finance
A property insurer provided the following information: Determine the loss, expense and combined ratios.
A property insurer provided the following information: Determine the loss, expense and combined ratios.
Premiums written $55,000,000
Expenses incurred 9,000,000
Incurred losses & loss adjustment expenses 38,000,000
Earned Premiums 42,000,000
Solutions
Expert Solution
Answer : Calculation of Loss Ratio
Loss Ratio = Incurred losses & loss adjustment expenses / Earned Premiums
= 38,000,000 / 42,000,000
= 0.90476190476 or 0.90
Expense Ratio = Expenses incurred / Premiums written
= 9,000,000 / 55,000,000
= 0.16363636363 or 0.16
Combined Ratio = Loss Ratio + Expense Ratio
= 0.90363636363 + 0.16363636363
= 1.07
jeff jeffy answered 1 year agoRelated Solutions
6. A property insurer provided the following information: Premiums written &
6. A property insurer provided the following
information:
Premiums
written $55,000,000
Expenses
incurred 9,000,000
Incurred
losses & loss adjustment
expenses 38,000,000
Earned
Premiums 42,000,000
a. What is the loss ratio? (1 point)
b. What is the expense ratio? (1
point)
c. What is the combined ratio? (1
point)
d. What does it mean for an insurer to have a
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Use the following information: Gross profit ₤3,900,000 Loss on sale of investments 10,000 Interest expense 7,500...
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Gain on sale of discontinued
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30,000
Income tax rate
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Compute the total amount of income tax expense experienced by the
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₤800,000
₤1,005,000
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A property owner has provided you with the following information. Assume the owner has no other...
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Assets: Cash $ 1,000,000 Land 1,500,000 Building 29,500,000 Total
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Income Taxes
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$
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$
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$
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b.
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c.
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d.
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e.
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96,600
34,776
34,776
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34,680
36,414
d.
105,100
7,357
50,448
1a. Compute times interest earned.
Company
numerator
/
denominator
=
ratio
/
=
n/a
a
$
/
$
=
n/a
b
$
/
$
=
n/a
c
$
/
$
=
n/a
d
$
/
$
=
n/a
Options for the row under...
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