- CFA Exams
- CFA Level I Exam
- Study Session 5. Financial Reporting and Analysis (1)
- Reading 16. Analysis of Financial Institutions
- Subject 4. Analyzing an Insurance Company
CFA Practice Question
Key performance ratios for three insurers
Loss and loss adjustment expense ratio | 65% | 68% | 70%
Underwriting expense ratio | 37% | 27% | 29%
Insurers | Insurer A | Insurer B | Insurer C
Loss and loss adjustment expense ratio | 65% | 68% | 70%
Underwriting expense ratio | 37% | 27% | 29%
Which issuer is the most successful in acquiring and managing underwriting business?
A. A
B. B
C. C
Explanation: The expense ratio is an indicator of the efficiency of money spent on obtaining new premiums.
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