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Carrier profitability: Linking premiums growth to combined ratio movement

Carrier profitability: Linking premiums growth to combined ratio movement


For example, 2021 experienced positive premium growth of around 5.5 percent while maintaining a favorable combined ratio of 80.8 percent, suggesting that in certain periods, growth can align with underwriting efficiency. Conversely, the following year posted the highest combined ratio of 86.4 percent, despite premiums reaching new highs, underscoring that premium volume growth does not inherently translate into margin improvement. 



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