Loss Ratio

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Stock Trading To Go  Sep 27  Comment 
A profit vs loss ratio is something that can by itself help you succeed investing in the stock market. They work wonders for new traders, and are used by professionals as well. This article will explain what a profit vs loss ratio is, how to...
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This is calculated by dividing a company's loss claims by its Premiums Earned, expressed as a percentage.

Loss ratios under 100% mean that the company's revenue from premiums exceed its claims payments. This metric is useful to compare the effectiveness of competitors' risk management strategies as the lower the loss ratio, the more likely the company will be profitable.

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