Insurance calculators
Insurer ratios
Earned premium, incurred claims, loss ratio, expense ratio, combined ratio, operating ratio and the underwriting result.
Inputs
Results
Combined ratio
93.0%
Underwriting profit
Loss ratio
63.2%
Incurred 720
Expense ratio
29.8%
Operating ratio
87.7%
Operating result 140
Underwriting account
| Line | Amount |
|---|---|
| Earned premium | 1,140 |
| Incurred claims | -720 |
| Expenses | -340 |
| Underwriting result | 80 |
| Investment income | 60 |
| Operating result | 140 |
Methodology
Conventions
- Earned premium = written premium less the increase in unearned premium reserves. Incurred claims = paid claims plus the increase in claims reserves.
- All ratios are to earned premium. The operating ratio deducts investment income.
References
- Swiss Re Institute, sigma: definitions of insurance ratios.
Formulas
- Loss ratio
- \text{incurred} / \text{earned}
- Combined ratio
- (\text{incurred} + \text{expenses}) / \text{earned}
- Operating ratio
- \text{combined} - \text{investment income} / \text{earned}