Insurance is something that you shouldn't go without, obviously! It's also something I think should be included in every Portfolio. Here are some of my factors of understanding when it comes to performing analysis on Insurance Stocks and some that I perceive as a great Investment. Combined Ratio : This is a key metric that insurance companies use to measure profitability. It’s calculated by dividing the sum of incurred losses and expenses by earned premiums. A ratio below 100% indicates that the company is making an underwriting profit, while a ratio above 100% means it's paying out more in claims and expenses than it's earning in premiums.
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