In this video as part of The Motley Fool's "Ask a Fool" series, Motley Fool Stock Advisor analyst Brendan Mathews takes a question from a Fool reader, who asks: "Can you explain the combined ratio that you use when you talk about insurance companies? How do the combined ratios of popular insurance companies compare?" In this video, Brendan explains the combined ratio, and he highlights two very good underwriters – Berkshire Hathaway (BRK.B 2.12%) and Markel (MKL 1.95%) -- and two companies that haven't done as well – CNA Financial (CNA 0.61%) and American International Group (AIG 2.20%).
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Learn how to evaluate insurance companies based on a key performance metric -- the combined ratio
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
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