Learn how to calculate the combined ratio for insurance companies, including financial and trade basis methods, using loss and expense ratios for profitability analysis.

Discover how the loss ratio and combined ratio assess insurance profitability by comparing incurred losses to premiums and expenses.

In May 2025, Tesla’s insurance arm posted a combined ratio of 121% — meaning for every dollar in premiums, it paid out $1.21 in claims and expenses. For context, most insurers break out into a profuse ...

Hanover Insurance Group has seen a decrease in the combined ratio (excluding catastrophic losses), which is encouraging. However, return on equity remains negative. I take the view that Hanover ...