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An insurance company collected $4.6 million in premiums and disbursed $2.16 million in losses. Loss adjustment...

An insurance company collected $4.6 million in premiums and disbursed $2.16 million in losses. Loss adjustment expenses amounted to 7.2 percent and dividends paid to policyholders totaled 1.4 percent. The total income generated from their investments was $220,000 after all expenses were paid. What is the net profitability in dollars? (Enter your answer in dollars not in millions.)


  Net profitability $   
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Answer #1
Pure loss (premiums - losses) (4.6-2.16)=>2.44m 2440,000
expenses (7.2%*4.6 m) (331,200)
dividends ($4.6m*1.4%) (64,400)
investment returns 220,000
net profits $2,264,400
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