Combined Ratio Calculator
The Combined Ratio Calculator measures insurer underwriting profitability by adding the loss ratio and expense ratio. Enter claims, expenses, and premiums to get the combined ratio.
Formula
Combined Ratio = (Claims + Expenses) ÷ Premiums × 100
- Below 100% means the insurer makes an underwriting profit.
- Above 100% means claims and expenses exceed premiums, though investment income may still offset it.
Rs 600,000 claims + Rs 300,000 expenses on Rs 1,000,000 premiums
Inputs
- Claims Incurred: 600000 Rs
- Underwriting Expenses: 300000 Rs
- Premiums Earned: 1000000 Rs
(600,000 + 300,000) ÷ 1,000,000 × 100 = 90%, an underwriting profit.
Frequently asked questions
What does a combined ratio over 100% mean?
It means underwriting is unprofitable — the insurer paid more in claims and expenses than it earned in premiums.