Provided below is the information from the QPR property and casualty insurance company: (000'$) Premiums Written 157,500.00 Loss Adjustment Expenses 10,340.00 Underwriting Expenses 52,500.00 Premiums Earned 187,500.00 Incurred Losses 113,750.00 Interest expense on bonds 1,400.00 Interest and dividend income 4,000.00 Questions: For 2021 (show your calculations): 1) Calculate the loss ratio 2) Calculate the expense ratio 3) Calculate the operating ratio 4) Calculate the investment ratio 5) Was the company profitable without the investment income? 6) Was the company profitable overall? Why?
Provided below is the information from the QPR property and casualty insurance company: (000'$) Premiums Written 157,500.00 Loss Adjustment Expenses 10,340.00 Underwriting Expenses 52,500.00 Premiums Earned 187,500.00 Incurred Losses 113,750.00 Interest expense on bonds 1,400.00 Interest and dividend income 4,000.00 Questions: For 2021 (show your calculations): 1) Calculate the loss ratio 2) Calculate the expense ratio 3) Calculate the operating ratio 4) Calculate the investment ratio 5) Was the company profitable without the investment income? 6) Was the company profitable overall? Why?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
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Provided below is the information from the QPR property and casualty insurance company:
|
|
(000'$) |
|
Premiums Written |
157,500.00 |
|
Loss Adjustment Expenses |
10,340.00 |
|
Underwriting Expenses |
52,500.00 |
|
Premiums Earned |
187,500.00 |
|
Incurred Losses |
113,750.00 |
|
Interest expense on bonds |
1,400.00 |
|
Interest and dividend income |
4,000.00 |
Questions:
For 2021 (show your calculations):
1) Calculate the loss ratio
2) Calculate the expense ratio
3) Calculate the operating ratio
4) Calculate the investment ratio
5) Was the company profitable without the investment income?
6) Was the company profitable overall? Why?
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