Unity Insurance Company (UIC) has an operating ratio of 0.98, a combined ratio of 1.02, and a loss ratio of0.77. Considering these ratios, which one of the following statements is true for UIC?OA. UIC's favorable financial basis expense ratio is offsetting losses, allowing an underwriting profit.B. UIC is collecting enough premium to allow a profit from its underwriting operations.C. UIC's investment income is offsetting losses and expenses from its underwriting operation, allowing anoperating profit.D. UIC is collecting enough premium exclusive of investment income to allow an operating profit.QUESTI

Financial ratios are quantitative metrics used to assess and analyze a company's financial…

Unity Insurance Company (UIC) has an operating ratio of 0.98, a combined ratio of 1.02, and a loss ratio of 0.77. Considering these ratios, which one of the following statements is true for UIC? OA. UIC's favorable financial basis expense ratio is offsetting losses, allowing an underwriting profit. OB. UIC is collecting enough premium to allow a profit from its underwriting operations. OC. UIC's investment income is offsetting losses and expenses from its underwriting operation, allowing an operating profit. OD. UIC is collecting enough premium exclusive of investment income to allow an operating profit.

Unity Insurance Company (UIC) has an operating ratio of 0.98, a combined ratio of 1.02, and a loss ratio of 0.77. Considering these ratios, which one of the following statements is true for UIC? OA. UIC's favorable financial basis expense ratio is offsetting losses, allowing an underwriting profit. OB. UIC is collecting enough premium to allow a profit from its underwriting operations. OC. UIC's investment income is offsetting losses and expenses from its underwriting operation, allowing an operating profit. OD. UIC is collecting enough premium exclusive of investment income to allow an operating profit.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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