2007-05-23 02:25:36 · 4 answers · asked by artsbest 1 in Business & Finance ➔ Insurance
Depends on the line of business. Most of the time, for homeowners and auto, you're damn lucky if it's 95%. "Good" results are under 110%.
Workers comp is usually over 100%, also. Commercial property has to run around 60% to make up for commercial general liability, which is usually well over 100%.
The only line of business which is consistantly profitable is bonds, where you can expect claims to be under 25%, or you fire your underwriters for not doing a good job.
Insurance companies don't make their money off the premiums - they make their money off the investments of the reserve monies.
2007-05-23 02:29:52 · answer #1 · answered by Anonymous 7 · 1⤊ 0⤋
Combined ratio can be anywhere from .90 up to 1.20.
Insurance rarely makes underwriting profits these days....the market is simply too soft.
2007-05-23 09:37:18 · answer #2 · answered by BillBobThornton 2 · 0⤊ 0⤋
Yes.
They wouldn't be in business very long if they did not make a decent profit.
2007-05-23 09:28:32 · answer #3 · answered by lunatic 7 · 0⤊ 0⤋
maybe........that still leaves 30% profit. And folks think big oil rips off people........lol
2007-05-23 09:28:49 · answer #4 · answered by Anonymous · 0⤊ 1⤋