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	Profit Margin Analysis
	Combined ratio projection, ROE analysis, and profit adequacy assessment
	Combined Ratio Projection
	Component	Ratio	Amount ($)	Notes
	Expected Loss Ratio	62.0%	$55,474,214	Credibility-weighted loss ratio
	Loss Adjustment Expense Ratio	7.0%	$6,265,000	ALAE + ULAE combined
	Catastrophe & Large Loss Loading	2.5%	$2,237,500	CAT + shock loss provisions
	Total Loss & LAE Ratio	71.5%	$63,976,714
	Underwriting Expense Ratio	26.5%	$23,717,500	Total expense excl LAE (in loss section)
	Operating Combined Ratio	98.0%	$87,694,214	Loss Ratio + Expense Ratio
	Underwriting Profit / (Loss)	2.0%	$1,805,786
	Investment Income	1.2%	$1,109,484	Inv rate * reserves * avg duration
	Operating Profit (Pre-Tax)	3.3%	$2,915,270
	Return on Equity (ROE) Analysis
	Metric	Value	Amount ($)	Notes
	Total Written Premium	$89,500,000		Latest year earned premium
	Premium-to-Surplus Ratio	1.8x		Leverage ratio from Assumptions
	Required Surplus (Equity)	$49,722,222		Premium / P-to-S ratio
	Pre-Tax Underwriting Profit	$2,915,270		From combined ratio above
	Federal Tax	($612,207)		Tax on positive profit only
	After-Tax Profit	$2,303,063
	Return on Equity (ROE)	4.6%		After-tax profit / required surplus
	Target ROE	10.0%		From Assumptions
	ROE Adequacy (Actual vs Target)	(53.7%)		Positive = exceeds target
	Target vs Actual Metrics Summary
	Metric	Target	Actual	Status
	Combined Ratio	97.0%	98.0%	FAIL
	Return on Equity	10.0%	4.6%	FAIL
	Underwriting Profit Margin	5.0%	2.0%	FAIL