Which one of the following lines is likely to be the largest contributor to PVIC's higher loss ratio?

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At the start of the second quarter of its fiscal year, the management of Pretty View Insurance Company (PVIC) noticed that it has experienced an increase in its YTD actual loss ratio compared with its target. The following chart shows its YTD loss ratio results as compared to its goals by LOB.

% Results as of March 31 -> %Annual Goal ->
Variance-> % of Earned Premium
Com. Auto 71 70 1 32
Pers. Auto 85 75 10 32
Homeowners 58 68 -10 32
Pers Umbrella 87 77 10 4

Which one of the following lines is likely to be the largest contributor to PVIC's higher loss ratio?

A.Commercial Auto
B.Personal Auto
C.Homeowners
D.Personal Umbrella

Answer: B. Personal Auto: the variance above goal is 10 percent and the total share of earned premiums is 32 percent.

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