what is the combined ratio 
the combined ratio also called the combined ratio after policyholder dividends ratio is a measure of profitability used by an insurance company to gauge how well it is performing in its daily operations the combined ratio is calculated by taking the sum of incurred losses and expenses and then dividing them by the earned premium the formula for the combined ratio is combined ratio incurred losses expenses earned premium begin aligned text combined ratio frac text incurred losses text expenses text earned premium end aligned combined ratio earned premiumincurred losses expenses investopedia julie bang