At P&C insurers,if the combined ratio is less than 100 percent,the premiums charged were sufficient to cover

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The combined ratio is a measure of profitability used by an insurance company, calculated by adding the loss ratio (losses incurred in claims plus adjustment expenses divided by premiums earned) and the expense ratio (underwriting expenses divided by premiums written). If the combined ratio is less than 100 percent, it indicates that the premiums charged were sufficient to cover both losses and expenses.

At P&C Insurers,if the Combined Ratio Is Less Than 100