CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

Key performance ratios for three insurers

Insurers | Insurer A | Insurer B | Insurer C
Loss and loss adjustment expense ratio | 65% | 68% | 70%
Underwriting expense ratio | 37% | 32% | 27%

Which issuer has the most efficient underwriting operation?

A. A
B. B
C. C
Correct Answer: C

It has the smallest combined ratio: 70% + 27% = 97%.

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