Suppose that an insurance company's loss ratio is 79.8 percent, its expense ratio is 27.9 percent and the company pays 2 percent of its premiums…
BBS Management of Financial Institutions · 2080 · Solved Question with Answer
Suppose that an insurance company's loss ratio is 79.8 percent, its expense ratio is 27.9 percent and the company pays 2 percent of its premiums earned to policyholders as dividends.
a. What is combined ratio after dividend?
b. If the company's investment portfolio yielded 12 percent, what is the operating ratio?
c. What is the overall profitability?