Expense Ratio Underwriting Percent Calculator
Actual underwriting expense ratio against explicitly selected independently applicable premium denominator. One currency, same reporting period; earned/written conventions are not silently mixed and no profitability claim follows.
Description
An underwriting expense ratio compares expenses with the applicable premium denominator for a matched period.
An underwriting expense ratio compares expenses with the applicable premium denominator for a matched period.1
Earned and written premium conventions should be selected explicitly.
When to use Expense Ratio Underwriting Percent Calculator
Use this tool to calculate or review the supplied observations under the stated rules. Establish the contract, jurisdiction, reporting basis, currency and dated evidence that apply.
How to use Expense Ratio Underwriting Percent Calculator and understand its results
- Establish the contract, jurisdiction, reporting basis, currency and dated evidence that apply.
- Enter verifiedUnderwritingExpenseMinor, callerApplicablePremiumDenominatorMinor, using the field meanings and rules below, then run the tool.
- Read result.observedExpenseRatioPercent, using the output meanings and calculation rules below.
- Correct any reported input issue and run again. Before using a successful result, check the stated units, signs, reference scope and observation coverage.
| Input field | Meaning | Value type | Requirement |
|---|---|---|---|
| verifiedUnderwritingExpenseMinor | Verified underwriting expense minor | number | Required |
| callerApplicablePremiumDenominatorMinor | Caller applicable premium denominator minor | number | Required |
Use nonnegative safe-integer underwriting expense and strictly positive safe-integer premium denominator in one currency and reporting basis. Divide expense by that selected denominator and multiply by one hundred. Values over one hundred percent are permitted.
expenseRatioPercent=100×expenseMinor/premiumDenominatorMinor Use the matching field units and the exact boundary, ordering and reference rules above.
| Output field | Meaning | Value type |
|---|---|---|
| result | Calculated observation or qualified reference | object |
| result.observedExpenseRatioPercent | observed Expense Ratio Percent | number |
{
"input": {
"verifiedUnderwritingExpenseMinor": 25000,
"callerApplicablePremiumDenominatorMinor": 100000
},
"output": {
"result": {
"observedExpenseRatioPercent": 25
}
}
}Limitations and assumptions
No accounting basis is selected automatically. The ratio alone does not determine profitability or reconcile earned and written premium conventions.
Missing required fields, unknown fields, wrong types and violated rules return input issues. Numeric values and outputs must be finite. Extremely large composite outputs are rejected.
Alternative or Complementary methods
For a related step, use Combined Operating Ratio Insurer Calculator: An operating-ratio convention combines matched loss, expense and investment-income ratios. For a complementary comparison, use Loss Cost Pass Through Change Percent Calculator: A loss-cost change compares estimates on the same exposure and coverage basis.
References
Similar or alternative tools
- Combined Operating Ratio Insurer Calculator
An operating-ratio convention combines matched loss, expense and investment-income ratios.
- Loss Cost Pass Through Change Percent Calculator
A loss-cost change compares estimates on the same exposure and coverage basis.