// definition
Combined ratio
Insurance underwriting profitability
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Short definition
Claims costs and expenses divided by premiums, expressed as a percentage. Below 100%, underwriting generates a surplus; above 100%, costs exceed premiums. The measure excludes investment results and does not measure solvency. Comparisons require the period, business line and reinsurance treatment to be specified.
risk atlas
Knowledge map
Intuition
Comparing claims and operating costs with premiums shows underwriting profitability before investment results.
Formula
Combined ratio = (claims costs + expenses) / premiums × 100Related analyses
- Car insurance: customer selectionCosts, reinsurance and underwriting in France.
Primary sources
- ACPR, insurers at the end of 2025Page 22: combined-ratio definition; page 12: net-of-reinsurance scope.