This number has a small (possibly trivial) effect on the exhibit as a
whole. The expense
calculations on these exhibits are confusing (and therefore highly
testable), so I am
interested to know if I am missing something.
Exhibit 7 and 8 (Underwriting Cycle Effect)
Col 6, Row 1 (Fixed expenses for new business)
The Exhibit shows $88.
First year premium is $800. (Col 1, Row 1)
The footnote says first year fixed expenses are 17.8% of premium.
17.8% * 800 = $142
Am I missing something, or should Col 6, Row 1 be $142, not $88 as printed.
Thanks,
Jeff