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Insurance > Operating Ratio (IRIS)

The following information is about Operating Ratio (IRIS).

Operating Ratio (IRIS) Defined

Combined ratio less the net investment income ratio (net investment income to net premiums earned). The operating ratio measures a company's overall operational profitability from underwriting and investment activities. This ratio doesn't reflect other operating income/expenses, capital gains or income taxes. An operating ratio of more than 100 indicates a company is unable to generate profits from its underwriting and investment activities.

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