{
  "id": "term-combined-ratio",
  "type": "term",
  "languages": {
    "en": {
      "id": "term-combined-ratio",
      "lang": "en",
      "type": "term",
      "title": "Combined Ratio",
      "shortDefinition": "The combined ratio is the sum of an insurer's loss ratio and expense ratio; a value below 100 percent means the underwriting business is profitable.",
      "synonyms": [
        "Loss and expense ratio"
      ],
      "linesOfBusiness": [
        "All lines"
      ],
      "jurisdictions": [
        "Global"
      ],
      "tags": [
        "Key figures",
        "Underwriting"
      ],
      "relations": {
        "relatedTerms": [
          "term-underwriting",
          "term-ibnr"
        ],
        "partOf": [],
        "appliesTo": [],
        "regulatedBy": [],
        "relevantFor": [],
        "insurableVia": [],
        "mitigatedBy": [],
        "comprises": [],
        "alternativeTo": [],
        "complementedBy": []
      },
      "attribute": null,
      "profile": null,
      "coverageProfile": null,
      "clause": null,
      "legalBasis": [],
      "standards": [],
      "reviewStatus": "expert-reviewed",
      "reviewedBy": "Guido Hesse, Hesse Group Holding AG",
      "lastReviewed": "2026-09-04",
      "version": "0.1.0",
      "updated": "2026-08-31",
      "generated": {
        "by": "process:reconstructed",
        "at": "2026-08-31T00:00:00.000Z"
      },
      "verified": [
        {
          "by": "human:ghesse",
          "at": "2026-09-04T00:00:00.000Z",
          "method": null
        }
      ],
      "staleAfter": null,
      "url": "https://hgh.ch/lexikon/en/knowledge/term/combined-ratio/",
      "alternateUrl": "https://hgh.ch/lexikon/de/wissen/begriff/combined-ratio/",
      "body": "## Calculation\n\nThe combined ratio relates claims expenditure (including loss adjustment expenses and changes in reserves) plus operating expenses to earned premium. A value of 95 percent means five cents of underwriting profit remain from every premium dollar – before investment income.\n\n## What it tells you\n\nThe ratio measures the quality of the core business independently of investment returns. Values above 100 percent may be deliberately accepted in high-interest-rate phases, but are a long-term warning signal for underwriting discipline.\n\n## Relevance for policyholders\n\nFor corporates, their insurer's combined ratio is an indicator of price stability and remediation pressure: persistently poor ratios in a line of business often precede premium increases or capacity withdrawal."
    },
    "de": {
      "id": "term-combined-ratio",
      "lang": "de",
      "type": "term",
      "title": "Combined Ratio",
      "shortDefinition": "Die Combined Ratio ist die Summe aus Schadenquote und Kostenquote eines Versicherers; liegt sie unter 100 Prozent, ist das versicherungstechnische Geschäft profitabel.",
      "synonyms": [
        "Schaden-Kosten-Quote"
      ],
      "linesOfBusiness": [
        "Alle Sparten"
      ],
      "jurisdictions": [
        "Global"
      ],
      "tags": [
        "Kennzahlen",
        "Underwriting"
      ],
      "relations": {
        "relatedTerms": [
          "term-underwriting",
          "term-ibnr"
        ],
        "partOf": [],
        "appliesTo": [],
        "regulatedBy": [],
        "relevantFor": [],
        "insurableVia": [],
        "mitigatedBy": [],
        "comprises": [],
        "alternativeTo": [],
        "complementedBy": []
      },
      "attribute": null,
      "profile": null,
      "coverageProfile": null,
      "clause": null,
      "legalBasis": [],
      "standards": [],
      "reviewStatus": "expert-reviewed",
      "reviewedBy": "Guido Hesse, Hesse Group Holding AG",
      "lastReviewed": "2026-09-04",
      "version": "0.1.0",
      "updated": "2026-08-31",
      "generated": {
        "by": "process:reconstructed",
        "at": "2026-08-31T00:00:00.000Z"
      },
      "verified": [
        {
          "by": "human:ghesse",
          "at": "2026-09-04T00:00:00.000Z",
          "method": null
        }
      ],
      "staleAfter": null,
      "url": "https://hgh.ch/lexikon/de/wissen/begriff/combined-ratio/",
      "alternateUrl": "https://hgh.ch/lexikon/en/knowledge/term/combined-ratio/",
      "body": "## Berechnung\n\nDie Combined Ratio setzt Schadenaufwand (inklusive Schadenregulierungskosten und Rückstellungsveränderungen) und Betriebskosten ins Verhältnis zur verdienten Prämie. Ein Wert von 95 Prozent bedeutet: Von jedem Prämienfranken verbleiben 5 Rappen versicherungstechnischer Gewinn – vor Kapitalanlageergebnis.\n\n## Aussagekraft\n\nDie Kennzahl misst die Qualität des Kerngeschäfts unabhängig vom Anlageerfolg. Werte über 100 Prozent können in Hochzinsphasen bewusst in Kauf genommen werden, sind langfristig aber ein Warnsignal für die Zeichnungsdisziplin.\n\n## Relevanz für Versicherungsnehmer\n\nFür Unternehmen ist die Combined Ratio ihres Versicherers ein Indikator für dessen Preisstabilität und Sanierungsdruck: Anhaltend schlechte Quoten in einer Sparte kündigen häufig Prämienerhöhungen oder Kapazitätsrückzug an."
    }
  }
}