Answer :
An insurance company with a combined ratio of (A). 104.4 will lose money on underwriting operations.
A ratio below 100 indicates profitability, as the company is earning more in premiums than it spends on claims and expenses. Conversely, a ratio above 100 signifies a loss on underwriting operations because the costs and losses exceed the premium income.
With a combined ratio of 104.4, the insurance company spends 4.4% more on claims and operating expenses than it earns in premiums. This results in underwriting losses, highlighting inefficiencies or higher-than-expected claim costs. The option (A) is correct.
