Coverall Property and Casualty Co. has the following ratios : Loss ratio = \( 75.5\ \) Expense ratio = \( 29.2\% \) Dividend ratio = \( 1.5\% \) In…
BBS Management of Financial Institutions · 2082 · Solved Question with Answer
Coverall Property and Casualty Co. has the following ratios
Loss ratio = \( 75.5\ \)
Expense ratio =\( 29.2\% \)
Dividend ratio = \( 1.5\% \)
In addition, the company's net investment income divided by premiums earned was 9.5 percent
a. Compute the company's combined ratio (after dividends)
b. Compute the company's operating ratio
c. What do the numbers suggest about the Coverall's profitability?