EOC question on insurance companies in Reading 17: Analysis of FI

CFA Level II FRA
#1

In the CFAI practice problem set, it says “Johansson tells Smith that she places emphasis on the efficiency of spending on obtaining new premiums”

From the notes, I understand that this is measured by underwriting expense ratio. However, the solutions list the right answer as A, combined ratio (which is defined as overall efficiency of an insurer’s underwriting business). Am I missing something here?

The question is reproduced below:

  1. The best indicator of the operations of a P&C insurance company emphasized by Johansson when evaluating P&C insurance companies is the:

A. Combined Ratio

B. Underwriting loss ratio

C. Underwriting expense ratio.

#2

Came across the same issue when I did that EOC set, after reviewing the ratios closely I decided to take it as an error in the book (or at the very least, a poorly written question).

#3

Thank you.

#4

Got to the same conclusion.

ERRATA 2020: The solution to practice problem 4 should be C Underwriting expense ratio.