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Foundations of Casualty Actuarial Science

C = claim count
E = exposure units

4. Severity

S=  L
    C

Where
    S = severity
    L = losses
    C = claim account.

5. Pure Premium
              P= L
                   E

         Where
              P = pure premium
              L = losses
              E = exposure units

or, pure premium can also be expressed as :
    P= C X L
          EC

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