Combined ratio
BankingDefinition
Insurance underwriting profitability. Sum of loss ratio + expense ratio. Below 100% = underwriting profit; above 100% = underwriting loss (still possibly profitable thanks to investment income on float).
Best-in-class: Progressive ~88-93%. Industry average: 100-103%. Catastrophic years (Florida hurricanes 2022) can push individual insurers into the 130s.
Best-in-class: Progressive ~88-93%. Industry average: 100-103%. Catastrophic years (Florida hurricanes 2022) can push individual insurers into the 130s.