the Q&A of Chapter 27, Q27.5 (ii), regarding the increase in DAC, would like to consult, generally speaking, should it be allowed as a net item of UPR for earned premiums as well as following loss ratio calculation or as a net item of expense for expense ratio? as per the answer, the 1.8 is ignored, so in that case have to understand that the increase in UPR of 11.9 had been netted of the DAC already?
Pages 12 and 13 give you the normal definitions of claims ratio and expense ratio. DAC is not part of the calculation.
