EFuturesCFO · Insurance Suite
Loss Ratio & Combined Ratio Optimizer
Model loss ratios by line of business, expense components, and combined ratio to identify the highest-leverage underwriting improvement opportunities.
Executive Summary
Line of Business
Combined Ratio Trajectory
Underwriting Levers
Methodology
Loss Ratio = Incurred Losses ÷ Net Earned Premium. Expense Ratio = (Commissions + Operating Expenses) ÷ NEP. LAE Ratio = LAE ÷ NEP. Combined Ratio = LR + ER + LAE Ratio. Underwriting Income = NEP − Losses − LAE − Expenses. Operating Income = UW Income + Investment Income. Target combined <95% indicates underwriting profit. Peer P&C combined: 95-102%.