WC Results

Combined Ratio
An indication of an insurance company’s health

      A combined ratio above 100 indicates that a carrier is paying out more in claims and expenses than it is taking in premiums. Carriers often consider it a more appropriate indicator of company performance than earnings because earnings also include profits on the company’s investments. A company with higher than 100-combined ratio can still be profitable because of investment income.

      The combined ratio is the sum of the combined loss ratio, expense ratio and dividend ratio for a given time period. The formula is [(Loss + Loss Adjustment Expense)/Earned Premium] + [Underwriting Expenses/Written Premium] + [Dividends to Policyholders/Earned Premium].

Calendar Year

Accident Year

Indiana 2006 results added 11/08/07.

Notes to charts:
Countrywide ratios are for private carriers on a net basis.
State ratios are on a direct basis.
Calendar year (CY) ratios are by definition, not developed.
Source data from carrier Annual Statements.
Accident year (AY) ratios are developed to ultimate.
Source data is based on combination of NCCI financial call
data and Annual Statement data.
Overall source:
    Country - Calendar and Accident Yr Results - Net Basis
    IEE and Statutory Page 14 - Direct Basis
    Indiana: Calendar Accident Year Results - NCCI

Combined Ratios
Calendar-Accident Year 2005

Source: NCCI Financial Call data used in Calendar-Accident Year Underwriting Results, evaluated as of 12/31/05; 36 states; NCCI website as of 5/22/07