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Loss Ratio Calculator

Calculate loss ratio for insurance analysis.

Loss Ratio Calculator - Insurance Analysis Tool

Loss Ratio Calculator

Incurred Losses ($) *

Total amount paid and reserved for claims

Earned Premiums ($) *

Premiums earned during the period

Time Period

Loss Ratio Analysis

Loss Ratio

Losses

Premiums

Loss Ratio Scale

0% 50% 100% 150%+

Industry Benchmarks

Excellent (< 60%)

Strong underwriting performance with good profitability margins

Acceptable (60% - 80%)

Reasonable performance with moderate profitability

Poor (> 100%)

Losses exceed premiums, indicating underwriting losses

Formula

Loss Ratio = (Incurred Losses / Earned Premiums) × 100

Incurred Losses: Claims paid plus reserves for unpaid claims

Earned Premiums: Portion of premiums earned during the period

Result: Percentage showing claims relative to premiums

Key Insights

Lower ratios indicate better underwriting performance

Ratios above 100% indicate underwriting losses

Consider combined ratio with expense ratio for full picture

Track trends over multiple periods for better insights

Additional Analysis

Profit Margin

Before expenses

Premium Adequacy

Coverage level

Claims Frequency

Per $1M premium

Risk Level

Assessment

v1.0.0.758733

Loss Ratio Calculator