Year 1 Year 2 Year 3 Premiums 120 110 100 Investment Income 0 10 20 Claims 55 55 100 Expenses 75 5 5 Solvency Reserve 10
Posted: Sun Jun 05, 2022 7:30 am
Year 1 Year 2 Year 3 Premiums 120 110 100 Investment Income 0 10 20 Claims 55 55 100 Expenses 75 5 5 Solvency Reserve 100 125 0 Benefit Reserve 50 60 0 DAC 70 40 0 Required Capital 5 10 0 Assume reserves, DAC, and required capital are EOY amounts No taxes Required capital investment income rate = 0% Calculate the ROA (as percentage).