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🛡️ Combined Ratio Calculator

Measure an insurer’s underwriting profitability by comparing incurred losses and expenses to earned premiums.

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What is the combined ratio?

The combined ratio is a key profitability measure for insurance companies. It compares the money paid out in claims and expenses to the premium income earned. A ratio below 100% indicates an underwriting profit; above 100% indicates an underwriting loss (before investment income).

The formula

Combined Ratio = (Incurred Losses / Earned Premium + Underwriting Expenses / Earned Premium) × 100. This calculator breaks the result into the loss ratio and expense ratio components before combining them.

This calculator is for general financial education and analysis purposes.

Last reviewed August 2026