0
Combined ratio = (Incurred Losses + Expenses)/Earned Premium
Anything 100% or under is considered an underwriting profit. Even greater than 100% may not be a problem, after investment income is added.
What else can I help you with?
Cost to income ratio?
operating expenses/operating income
How do you calculate operating cost ratio?
The operating cost ratio (OCR) is calculated by dividing total operating expenses by total revenue. The formula is: OCR = (Operating Expenses / Total Revenue) x 100. This ratio helps assess the efficiency of a business in managing its operating costs relative to its income, with a lower ratio indicating better operational efficiency.
What is operating assets turnover?
Operating asset turnover is the ratio of net sales divided by operating assets.
Which financial ratio is the best measure of the operating effectiveness of a firms management?
current ratio
When evaluating the operating efficiency of a firm's managers What ratio would you look at?
When evaluating the operating efficiency of a firm's managers, you would look at the Asset Evaluation Ratio.
Operating Cash Flow to Current Liabilities Ratio?
operating cash flow to current liabilities ratio = cash flow from operations / avg. total liabilities
What is an operating margin in business?
In business, an operating margin is the revenue of a business minus the operating expenses. It is the ratio of operating income divided by net sales.
Define leverage ratio?
Leverage Ratio is an idea of how a change in a company's output will affect their operating income. It is used to measure a company's mix of operating costs, showing how a change in the company's ideas will affect the output of their operating income.
What is the bench mark rate of Operating Cash Flow Ratio?
wewewew
What is critical speed ratio of shaft?
The critical speed ratio of a shaft is a dimensionless value that indicates the relationship between the operating speed of the shaft and its critical speed, which is the speed at which the shaft experiences resonance and can vibrate uncontrollably. It is defined as the ratio of the shaft's operating speed to its critical speed. A critical speed ratio of less than one means the shaft is operating below its critical speed, while a ratio greater than one indicates it is operating above critical speed, which can lead to increased vibrations and potential failure. Proper design and analysis are essential to ensure that the operating speed remains safely below the critical speed.
What is meant by operating ratio in Indian railways?
Question: What exactly is meant by the operating ratio with respect to the Railways budget?Answer. Operating ratio is the amount of rupees spent to earn 100 Rupees.If its less than 100 = you're making profit.If more than 100 =you're making losses.For railways, Operating ratio for passenger trains used to be about Rs.75 earlier but now it is almost Rs.125. That means Railway is not making profit in passenger trains.Because of this increase in Operating Ratio, Railway increases Freight charges (money charged on transport of goods such as coal, cement etc), to cover up the losses. This is called Cross-subsidization and it increases the inflation indirectly.
Calculatung degree of operating leverage?
DOL is a ratio that is used to identify the changes in the operating leverage that a company requires with growth in sales and income. As and when a company grows and its sales increases, the operating costs also increase and the operating leverage required by the promoters also changes. This ratio helps us identify that value.Formula:DOL = Percentage Change in Net Operating Income / Percentage Change in Sales
