One of the most important metrics to watch at insurances companies, like Markel (NYSE:MKL), Berkshire Hathaway (NYSE:BRK-A)(NYSE:BRK-B), and Montpelier Re (NYSE: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.