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Loss Ratio Calculator

Finance

Calculate the loss ratio to see what percentage of earned premiums an insurer pays out in claims.

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USD
$0.00$1,000,000,000.00
USD
$1.00$1,000,000,000.00

Loss Ratio

65.00%

Incurred losses as a percentage of earned premiums

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Odeh Ahwal

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Odeh Ahwal
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Frequently Asked Questions

What is a good loss ratio for an insurer?

Loss ratios between 40 and 60 percent are common in many insurance lines, leaving room to cover expenses and generate underwriting profit.

How is loss ratio different from combined ratio?

Loss ratio only compares claims to premiums, while combined ratio also factors in underwriting expenses, giving a fuller picture of overall profitability.

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