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What Is the Combined Ratio?

A deeper look at the combined ratio.

By Matt Koppenheffer and David Hanson – Jan 21, 2014 at 7:54PM EST

One of the most important metrics to watch at insurances companies, like Markel (MKL 0.84%), Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B), and Montpelier Re (MRH +0.00%), 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.

Read Next

About the Author

Matt Koppenheffer
Matt Koppenheffer is the former Head of the Coverage Team at The Motley Fool. He was a full-time Motley Fool employee from 2012-2025 and is a former advisor and analyst for multiple Motley Fool services. Matt's articles and analysis have been published around the world and his views have been cited in worldwide publications from the Financial Times and The New York Times to the Toronto Star and Germany's Focus Money. He has appeared to offer analysis on a variety of outlets including CNBC and NPR. Matt is the co-author of The Astonishing Collapse of MF Global as well as the creator and former co-host of The Motley Fool's Industry Focus podcast.
TMFKopp
X@KoppTheFool

Stocks Mentioned

Berkshire Hathaway Stock Quote
Berkshire Hathaway
NYSE: BRKA
$740,000.00
(0.00%)+$0.00
Berkshire Hathaway Stock Quote
Berkshire Hathaway
NYSE: BRKB
$492.96
(-0.24%)-$1.18
Markel Group Stock Quote
Markel Group
NYSE: MKL
$1,956.56
(-0.71%)-$14.08

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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