Loss ratios are calculated by dividing the total losses paid by the captive by the total premiums earned by it.
Example:
• If a captive earns $1 million in premiums and pays out $500,000 in claims, its loss ratio would be 50%.
Loss ratios are calculated by dividing the total losses paid by the captive by the total premiums earned by it.
Example:
• If a captive earns $1 million in premiums and pays out $500,000 in claims, its loss ratio would be 50%.