Combined Ratio After Policyholder Dividends

Definition

• A ratio measuring the profitability of a company's underwriting. A combined ratio less than 100 is a strong indicator of underwriting profitability.

Synonyms
grade, profitability ratio

Related Terms and Acronyms

• Dividend — Definition,
  • Distribution of earnings to shareholders. In credit unions, it's the money paid to members for deposits, similar to the interest banks pay to their customers for deposits.
• Investment Income — Definition,
  • Income that is earned from investments such as interest, dividends, and capital gains.
• Policyholder Dividend Ratio — Definition,
  • A ratio comparing the dividends paid to policyholders to net premiums earned by the insurer.