Achieve a positive operating ratio

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Sagicor Financial Corporation Limited, currently serves 14 countries in the Caribbean through the provision of financial services, which include property and casualty insurance. As at January 2016, the company's projected loss ratio is 77.5 percent and its loss adjustment expense ratio is 12.9 percent. Sagicor estimates that commission payments and dividends to policyholders will be 16 percent.

a. What must be the minimum yield on investments to achieve a positive operating ratio?

Reference no: EM131660598

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