Definitions for "Combined ratio"
In general insurance, claims and operating expenses as a percentage of premium income.... more on: Combined ratio
A sum of two ratios, one calculated by dividing incurred losses plus loss adjustment expenses by earned premiums, and the other calculated by dividing all other expenses by written premiums. When applied to a company's overall results, the combined ratio is also known as the composite, statutory, or trade ratio. In both insurance and reinsurance, a combined ratio below 100% indicates an underwriting profit.
The ratio of claims plus COMMISSION and BROKERAGE (more commonly known as general reinsurance expenses) to premiums. The combined ratio may be calculated gross or net of REINSURANCE, in respect of RETROCESSIONs, on an ultimate basis or in respect of earned premiums.