> A combined ratio of 100 means you've paid out $1.00 in claims and expenses for every $1.00 brought in as premium. Sounds bad but due to investments made an in

> A combined ratio of 100 means you've paid out $1.00 in claims and expenses for every $1.00 brought in as premium. Sounds bad but due to investments made an insurance company can still be profitable with a combined ratio of 100 or over. This is what they'll tell you, but most insurance companies make net revenue even before investment gains and assuming a combined ratio of 100, because they don't include the sale of ancilliaries in the combined ratio. If they sell you car insurance, the basic premium is used to calculate the combined ratio, any alloy wheel cover, no claims protection, lost key cover, etc are kept out to make it seem like life as an insurance company is harder than it really is.