Combined ratio: underwriting profit before investment income.
Research explainer · Published 22 September 2026
An insurer’s combined ratio compares claims and underwriting expenses with premiums. Below 100% indicates an underwriting profit on the stated basis; above 100% indicates an underwriting loss before investment income. Check each company’s definitions and reporting period.
Do not confuse the ratio with the margin
A 57.6% combined ratio implies an underwriting margin of approximately 42.4% on that basis: 100% minus 57.6%. It does not mean the underwriting margin is 57.6%.
Why a low ratio is not enough
Benign weather, reserve releases, business mix and reinsurance can affect a period’s result. A catastrophe-exposed insurer may report strong ordinary quarters and then incur a large loss. Valuation needs assumptions across different conditions, alongside capital strength and reinsurance protection.
Our dated Slide Insurance report discusses a 57.6% second-quarter combined ratio and a more conservative normalisation scenario. Read its linked company filings and results for the underlying figures.
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