Loss Ratio definition

Loss Ratio means the ratio (expressed as a percentage) of the total amount of losses on claims associated with insurance policies incurred during a specified period to premiums earned during such period. The loss ratio is a key measure of underwriting profitability and the quality of the insurance portfolio and is used for comparisons to industry benchmarks and internal targets.
Loss Ratio means the ratio calculated by dividing the ultimate net loss by the net book premium, expressed as a percentage. For example, if $1 ultimate net loss is paid and 50 cents net book premium is received, this would be expressed as a 200 percent loss ratio.
Loss Ratio means, for any Distribution Date, the fraction (expressed as a percentage) derived by dividing (x) Net Liquidation Losses for all Contracts that became Liquidated Contracts during the immediately preceding Due Period multiplied by twelve by (y) the outstanding Principal Balances of all Contracts as of the beginning of the Due Period.

Examples of Loss Ratio in a sentence

  • Table 8 displays a positive coefficient value,indicating that the Loss ratio might amplify the impact of the Risk Based Capital Ratio on financial distress.

  • Table 8's coefficient value is positive, indicating that the Loss ratio might amplify the impact of the Liquidity Ratio on financial distress.

  • Based on data recorded in the last five year period, the Loss ratio for the credit insurance business line is not absolutely higher than the overall Loss ratio, but in 2018 the Loss ratio for the credit insurance business line showed a significant increase.

  • Loss ratio m e a n s t h e r a t io of i n de m - n i t y( ies) t o p r e m i u m ( s).m .

  • Loss ratio standards.The commissioner may adopt or amend rules establishing loss ratio standards for long-term care insurance policies; provided, that a specific reference to long-term care insurance policies is contained in the rules.


More Definitions of Loss Ratio

Loss Ratio means the ratio of incurred losses to earned premium.
Loss Ratio means incurred claims divided by the sum of earned premiums and imputed interest earned on unearned premiums.
Loss Ratio means the ratio of indemnity to premium.
Loss Ratio means the ratio between the amount of premium received and the amount of claims paid by the insurer under the group insurance contract or policy. [PL 1995, c. 71, §2 (NEW).]
Loss Ratio means the ratio (expressed as a percentage) of the total amount of losses on claims associated with insurance policies incurred during a specified period to net premiums earned during such period.
Loss Ratio means, on any date, the greatest three-month average Default Ratio as calculated for each of the 12 most recently ended calendar months.