Combined Ratio
Calculator
Results
- Loss ratio
- 62
- Expense ratio
- 26.666666
- Combined ratio
- 88.666666
- Underwriting profit
- 11.333333
Insurance and risk results
| Loss ratio | 62 |
| Expense ratio | 26.666666 |
| Combined ratio | 88.666666 |
| Underwriting profit | 11.333333 |
formula-map diagram
- Loss ratio
- 62
- Expense ratio
- 26.666666
- Combined ratio
- 88.666666
- Underwriting profit
- 11.333333
Coverage and risk relationship
Formula
Combined ratio = losses ÷ earned premium + expenses ÷ written premium= 62
Note
This is generic arithmetic using the amounts, rates and factors you entered. It is not an insurance quote, a policy interpretation, or financial advice. No insurer rate, jurisdiction rule, statutory limit or policy wording is built in. Real premiums and payouts depend on underwriting, your policy's exact terms and exclusions, and applicable regulation; confirm with your insurer or a licensed professional.
More in Insurance and risk
See all →Frequently asked questions
How does the combined ratio differ from the loss ratio alone?+
The combined ratio adds the expense ratio (operating costs as a percentage of premium) to the loss ratio, giving a complete picture of underwriting profitability, whereas the loss ratio alone only captures claims costs.
What does a combined ratio below 100% mean?+
It means the insurer earned an underwriting profit: premiums collected exceeded claims paid plus operating expenses, before factoring in investment income, which is a separate source of profitability.
Can an insurer be profitable with a combined ratio above 100%?+
Yes, many insurers operate with combined ratios slightly above 100% and remain profitable overall because they earn investment income on the premiums (the 'float') they hold before claims are paid out.
Why does the combined ratio vary so much by insurance line?+
Lines with more predictable, frequent, smaller claims (like auto) tend to run tighter combined ratios, while catastrophe-exposed lines (like property in hurricane zones) see more volatile ratios that spike in bad years and dip in quiet years.
What's a typical 'good' combined ratio in the industry?+
Ratios in the 90-100% range are generally considered healthy and sustainable for most property and casualty lines, though highly efficient insurers in stable lines sometimes achieve consistently lower ratios.