Insurer Operating Results By Population Loss Ratio Estimate - Profits

All insurers earn profits according to these relationships:

Profit $\geq$ (Profit Margin + Risk Premium) IF Claims Costs $\leq$ Expected Claims Costs

Profit $\geq$ Profit Margin IF Claims Costs $\leq$ (Expected Claims Costs + Risk Premium)

Profit $\geq$ 0 IF Claims Costs $\leq$ (Expected Claims Costs + Profit Margin + Risk Premium)