combined ratio Definition

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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.

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combined ratio is in the Accounting and Insurance subjects.

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