In property and casualty insurance the combined ratio is equal to ________ divided by total premiums written.

Question

Quizplus · Accepted Answer

The combined ratio in property and casualty insurance is calculated by adding the loss ratio and the expense ratio. The loss ratio is the amount of losses incurred by the insurer (including loss adjustment expenses) divided by total earned premiums. The expense ratio is the insurer's underwriting expenses divided by total premiums written. The combined ratio is a measure of an insurer's underwriting profitability, where a ratio under 100% indicates the insurer is making an underwriting profit and a ratio over 100% indicates the insurer is making an underwriting loss.

In Property and Casualty Insurance the Combined Ratio Is Equal