Insurance companies have a combined loss ratio For example Progressive spends $1.14 for every dollar they bring in via direct written premium (I didn’t look it up but it’s around that with most carriers).
Their money comes for their investments which make up for the loss.
I would expect that ratio to actually rise as insurance rates are increased due to the increase in car price and other associated costs like providing rentals at higher rates and for longer periods due to delays in parts and labor.
Cgable01 t1_j25ykod wrote
Reply to comment by SunriseSurprise in Progressive: The Valuation Enigma by 2ndSifter
Insurance companies have a combined loss ratio For example Progressive spends $1.14 for every dollar they bring in via direct written premium (I didn’t look it up but it’s around that with most carriers).
Their money comes for their investments which make up for the loss.
I would expect that ratio to actually rise as insurance rates are increased due to the increase in car price and other associated costs like providing rentals at higher rates and for longer periods due to delays in parts and labor.