Premium cost of insurance

Question

If an insurance company has a payout of 17 millions, admin expense at 5 million, and profit of 2 million, with 26,000 insured. How much premium would they charge to each client.

Answer 1

Not enough information - you'd ALSO have to know what the reserves are, and what the return on the reserves are.  

Many insurance companies subsidize the premiums the clients pay, with "reserve income".  Example:   Health insurance.  Payout is approx. $.98 for every $1 in premium, and expenses average about $.20 for every $1 in premium.  You're looking at $1.18 in costs for every $1 charged in premium.  The difference - AND PROFITS - are made off the reserve income.

Answer 2

$846.16 dollars or so.  Some people may subtract that 2 million out.  But, in doing so, the total would come out to $769.  But, the compan wouldnt make any money.