An insurance companyrsquos projected loss ratio is 79


An insurance company’s projected loss ratio is 79 percent, and its loss adjustment expense ratio is 13.3 percent. It estimates that commission payments and dividends to policyholders will add another 17 percent. What is the minimum yield on investments required in order to maintain a positive operating ratio?

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Financial Management: An insurance companyrsquos projected loss ratio is 79
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