Operating ratio

Operating ratio

Combined ratio less the net investment income ratio (net investment income to net premiums earned). The operating ratio measures a company's overall operational profitability from underwriting and investment activities. This ratio doesn't reflect other operating income/expenses, capital gains or income taxes. An operating ratio of more than 100 indicates a company is unable to generate profits from its underwriting and investment activities.

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Part of Speech: noun
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Industry/Domain: Insurance
Category: Life insurance
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operating ratio

Financial services; Private equity

A company’s operating expenses divided by its operating revenues, or, more generally, any of a number of ratios measuring a company’s operating efficiency, such as sales to cost ...

operating ratio

Financial services; General Finance

A ratio that measures a firm's operating efficiency.

operating ratio

Insurance; Life insurance

Combined ratio less the net investment income ratio (net investment income to net premiums earned). The operating ratio measures a company's overall operational profitability from ...

operating ratio

Transportation; Shipping

A comparison of a carrier’s operating expense with its net sales. The most general measure of operating efficiency.

ratio

Accounting; Auditing

The relation between two quantities expressed as the quotient of one divided by the other. The ratio of 8 to 2 is written 8/2 and equals four. Financial statement ratios are used ...

ratio

Mathematics; Calculus

A relationship between two numbers. If a box has six red marbles and four blue marbles, the ratio of red marbles to blue marbles is 6 to 4.

Lloyd's

Insurance; Life insurance

Generally refers to Lloyd's of London, England, an institution within which individual underwriters accept or reject the risks offered to them. The Lloyd's Corp. provides the ...

Lloyds organizations

Insurance; Life insurance

These organizations are voluntary unincorporated associations of individuals. Each individual assumes a specified portion of the liability under each policy issued. The ...

National Association of Insurance Commissioners (NAIC)

Insurance; Life insurance

Association of state insurance commissioners whose purpose is to promote uniformity of insurance regulation, monitor insurance solvency and develop model laws for passage by state ...

dividend

Insurance; Life insurance

The return of part of the policy's premium for a policy issued on a participating basis by either a mutual or stock insurer. A portion of the surplus paid to the stockholders of a ...

earned premium

Insurance; Life insurance

The amount of the premium that as been paid for in advance that has been "earned" by virtue of the fact that time has passed without claim. A three-year policy that has been paid ...

elimination period

Insurance; Life insurance

The time which must pass after filing a claim before policyholder can collect insurance benefits. Also known as "waiting period."

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