Compared to its net underwriting gain or loss, an insurer's overall gain or loss from operations gives a

Compared to its net underwriting gain or loss, an insurer's overall gain or loss from operations gives a



A. Distorted picture of an insurer's profitability.
B. Less complete picture of an insurer's profitability.
C. More complete picture of an insurer's profitability.
D. More conservative picture of an insurer's profitability.


Answer: C. An insurer's overall gain or loss from operations provides a more complete picture because it includes net investment gains (or losses), which help offset any underwriting losses.

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