A property-casualty insurer brings in $6.15 Million in premiums onto its homeowners MP line of insurance. The line's losses amount at $4,212,750, expenses are $1,506,750, and dividends are $92,250. The insurer earns $153,750 in the investment of its premiums. Calculate the line's operating ratio.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 12P
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A property-casualty insurer brings in $6.15 Million in
premiums onto its homeowners MP line of insurance.
The line's losses amount at $4,212,750, expenses are
$1,506,750, and dividends are $92,250. The insurer
earns $153,750 in the investment of its premiums.
Calculate the line's operating ratio.
Transcribed Image Text:A property-casualty insurer brings in $6.15 Million in premiums onto its homeowners MP line of insurance. The line's losses amount at $4,212,750, expenses are $1,506,750, and dividends are $92,250. The insurer earns $153,750 in the investment of its premiums. Calculate the line's operating ratio.
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