One of the most important metrics to watch at insurances companies, like Markel (MKL -1.05%), Berkshire Hathaway (BRK.A -0.62%) (BRK.B -0.52%), and Montpelier Re (MRH.DL), is the combined ratio. But what exactly is the combined ratio and why is it important?

In this segment of The Motley Fool's financials-focused show, Where the Money Is, banking analysts Matt Koppenheffer and David Hanson discuss the metric and its meaning.