Sunday, 8 November 2026 Weekly snapshot · Not investment advice standard-equity.report
Insurance
Benefit Ratio
Policy benefits and claims as a percentage of premiums.
Definition
Policy benefits (claims, payouts and reserve changes) divided by premiums earned. Life insurers and composites mix long-term business into their costs, so a combined ratio would mislead; this is the underwriting measure we can compare.
Formula
(Policy Benefits ÷ Premiums Earned) × 100
Why it matters
A rising benefit ratio means claims and payouts eat a bigger share of premiums. For life insurers it also moves with investment returns credited to policyholders, so read it as a trend, not a level.
How Standard Equity uses it
Shown in place of the combined ratio for life insurers, composites and insurers without an underwriting cost line. Lower is better.
The metric
| Category | Insurance |
|---|---|
| Unit | % |
| Applies to | Insurance only |