combined ratio

Definition

A measure of the profitability of an insurance company. The combined ratio equals expenses and losses divided by revenue from premiums. The result is expressed as a percentage, and a value greater than 100% means the company is paying out more than it's taking in, and a value less than 100% means it is taking in more than it is are paying out.

Use combined ratio in a sentence

You may want to try and break down the combined ratio to figure out how it is best to proceed.

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They had a very good combined ratio and we were all happy about it, which lead to us all feeling good about them being a profitable company,

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The board was rather relieved when the analysis of the combined ratio came back in our favor, as there had been some worries that it may be to the contrary.

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combined loan to value ratio combined single limit