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What is the combined ratio? Claims plus costs, with real US insurers

The combined ratio adds an insurer's loss ratio and expense ratio. How it is worked out, where to find it in a 10-K, and real US insurers.

By · Checked against filings: , 1 min read, Seen in 1 company on Cityfort. Editorial policy. Corrections

For learning only. Cityfort is not a registered investment adviser or broker-dealer and does not recommend buying or selling any security. Prices shown are dated and may be out of date.

What is a combined ratio?

A combined ratio adds an insurer's loss ratio and its expense ratio.[S1] The loss ratio is incurred losses as a percentage of earned premiums. The expense ratio is the share of premiums spent on selling and servicing policies.[S1] Cityfort shows it for property and casualty insurers (car, home and business cover).

How is the combined ratio worked out?

Combined ratio = loss ratio + expense ratio.[S1]

The bases differ. The NAIC glossary divides expenses by written premiums.[S1] Progressive divides both by net premiums earned, and counts claim-handling costs in its loss ratio.[S3] So figures are not always like for like. A row note flags a company's own definition.

Above 100%, losses and expenses came to more than premiums on those bases. The sum leaves out investment income.[S2]

What do health insurers report instead?

A medical care ratio: benefit expense as a percentage of premiums. In their 10-Ks for 2025, Elevance Health calls it the benefit expense ratio and Humana the benefit ratio.[S4][S5] It is not the federal medical loss ratio, which is worked out differently.[S6]

Where do you find it in a 10-K or 10-Q?

SEC rules list an insurer's income statement lines: premiums, net investment income, claims and settlement expenses, and underwriting expenses.[S2] These sit in 10-K Item 8, or 10-Q Part I, Item 1.[S7][S8] The ratios are not among those lines. Progressive and Elevance Health report theirs in MD&A (10-K Item 7).[S3][S4][S7]

What does the combined ratio leave out?

  • Net investment income and realized investment gains or losses.[S2]
  • Income taxes.[S2]
  • Fees and other income, unless netted against expenses, as Progressive does.[S3]

See it in real companies

Combined ratio at companies on Cityfort

1 company on Cityfort, listed A–Z (not ranked).

Progressive
87.4%FY2025 · loss ratio 65.9% plus expense ratio 21.5%, as reported; the company defines it its own way (see the page) · source S2

From each company's filings, as cited on its Cityfort stock page. These figures change when a stock page is updated.

See it in real companies

Medical care ratio at companies on Cityfort

2 companies on Cityfort, listed A–Z (not ranked).

Elevance Health
90.0%FY2025 · as reported; the company defines it its own way (see the page) · source S1
Humana
90.2%FY2025 · as reported; the company defines it its own way (see the page) · source S1

From each company's filings, as cited on its Cityfort stock page. These figures change when a stock page is updated.

Questions people ask

Does the combined ratio include investment income?
No. It adds only the loss ratio and the expense ratio. Net investment income and realized investment gains are separate lines on an insurer's income statement.[S1][S2]
What are loss adjustment expenses?
The NAIC defines them as the costs of adjusting and recording losses, in other words of handling claims. Some insurers count them in the loss ratio. Progressive, for example, reports a loss and loss adjustment expense ratio.[S1][S3]
Do all insurers divide by the same premiums?
No. The NAIC glossary divides losses by earned premiums and expenses by written premiums. Progressive's annual report expresses both ratios as a percentage of net premiums earned.[S1][S3]
Is a health insurer's medical care ratio the same as the federal medical loss ratio?
No. The federal ratio adds spending on improving health care quality to claims. It also takes taxes and licensing and regulatory fees out of premium revenue. A company's own ratio divides benefit expense by premiums.[S6][S4][S5]

Sources

  1. S1Glossary of Insurance Terms: combined ratio, loss ratio, expense ratio, loss adjustment expense, earned premium, premiums written (undated web page, read Nov 7, 2026) · National Association of Insurance Commissioners (NAIC)Tier 1: company or exchange filing · Nov 7, 2026
  2. S217 CFR 210.7-04 (Regulation S-X Rule 7-04): insurance company statements of comprehensive income, captions 1 to 9 (eCFR, up to date as of Nov 4, 2026) · Electronic Code of Federal Regulations (eCFR)Tier 1: company or exchange filing · Nov 4, 2026
  3. S3The Progressive Corporation, 2025 Annual Report to Shareholders (Exhibit 13 to the FY2025 Form 10-K), MD&A, Results of Operations: Underwriting · The Progressive Corporation (SEC EDGAR)Tier 1: company or exchange filing · Mar 2, 2026
  4. S4Elevance Health, Form 10-K for fiscal year 2025, Item 7 (MD&A), Consolidated Results of Operations, note 2 (benefit expense ratio) · Elevance Health, Inc. (SEC EDGAR)Tier 1: company or exchange filing · Feb 6, 2026
  5. S5Humana, Form 10-K for fiscal year 2025, Item 7 (MD&A), Results of Operations (benefit ratio) · Humana Inc. (SEC EDGAR)Tier 1: company or exchange filing · Feb 19, 2026
  6. S645 CFR 158.221: formula for calculating an issuer's medical loss ratio, paragraphs (a) to (c) (eCFR, up to date as of Nov 4, 2026) · Electronic Code of Federal Regulations (eCFR)Tier 1: company or exchange filing · Nov 4, 2026
  7. S7Investor Bulletin: How to Read a 10-K, September 2011 (Item 7, MD&A, and Item 8, Financial Statements and Supplementary Data) · U.S. Securities and Exchange Commission, Office of Investor Education and AdvocacyTier 1: company or exchange filing · Sep 1, 2011
  8. S8Form 10-Q, Part I, Item 1 (Financial Statements) and Item 2 (MD&A) (form version SEC 1296, 02-25) · U.S. Securities and Exchange CommissionTier 1: company or exchange filing · Feb 1, 2025

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