Expense Ratio

The percentage of premium used to pay all the costs of acquiring, writing and servicing insurance and reinsurance.

Combined Ratio

Percentage of each premium dollar a property/casualty insurer spends on claims and expenses. A decrease in the Combined Ratio means financial results are improving; an increase means they are deteriorating. AlternativeA sum of two ratios, one calculated by dividing incurred losses plus loss adjustment expenses by earned premiums, and the other calculated by dividing all other … Read more

Balance Sheet

Provides a snapshot of a company’s financial condition at one point in time. It shows assets, including investments and reinsurance, and liabilities, such as loss reserves to pay claims in the future, as of a certain date. It also states a company’s equity, known as policyholder surplus. Changes in that surplus are one indicator of … Read more

Annual Statement

Summary of an insurer’s or reinsurer’s financial operations for a particular Year, including a balance sheet. It is filed with the state insurance department of each jurisdiction in which the company is licensed to conduct business.

Admitted Assets

Assets recognized and accepted by state insurance laws in determining the solvency of insurers and reinsurers. To make it easier to assess an insurance company’s financial position, state statutory accounting rules do not permit certain assets to be included on the balance sheet. Only assets that can be easily sold in the event of liquidation … Read more