Combined ratio
The term non-life combined ratio , combined ratio and combined ratio referred to in the insurance industry , the ratio of expenditure on insurance operations and insurance payments to earned premiums .
| Period | Company / group | Gross loss ratio |
Gross cost ratio |
Damage- cost ratio |
source |
|---|---|---|---|---|---|
| 2006 | HanseMerkur Reiseversicherung AG | 53% | |||
| 1st half 2005 | Generali | 56.5% | 32.8% | 89.3% | |
| 2005 | Cosmos Insurance AG | 77.7% | 22.5% | 100.2% | |
| 1999 - 2008 |
Insurance market in Germany | 64.7% - 76.3% |
25.2% - 27.2% |
89.9% -
103.5% |
scope of application
This key figure is important in property and casualty insurance . In personal insurance, it is not meaningful, since there the premium payments and the insurance benefits regularly differ in time. The present value of this difference is to be included in the actuarial reserve .
Calculation and related quantities
- The total loss ratio or gross loss ratio indicates the ratio of costs for damage incurred to premium income.
- The gross expense ratio or operating expense ratio indicates the ratio of expenses for administration and conclusion of insurance contracts to premium income.
- The combined ratio indicates the ratio of costs for incurred damage and expenses for administration and conclusion of insurance contracts to premium income.
The combined ratio is the sum of the gross loss ratio and gross expense ratio.
The lower the combined ratio, the more profitable the company is. If the combined ratio is greater than 1 or greater than 100%, a loss is made in the actual insurance business.
German insurance industry
The combined ratio in the German insurance industry (property and casualty insurance) was 93.2% in 2017 (2016: 94.7, 2015: 96.1, 2014: 94.6)
Individual evidence
- ↑ hansemerkur.de ( Memento of the original from March 24, 2012 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ gwv-fachverlage.de
- ↑ visavis.de ( page no longer available , search in web archives ) Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice.
- ^ Institute for Insurance Science at the University of Cologne PDF
- ↑ Property and Casualty Insurance (Overview) | GDV.de. Accessed February 1, 2018 (German).
