Definition
The underlying combined ratio is the combined ratio excluding the impact of major claims, providing a clearer view of the ongoing profitability from an insurer’s regular business activities. It normalises for significant events.
Why it matters (in Poovi’s context)
This metric is important for evaluating the core, fundamental underwriting performance and resilience of the business, as it removes the distorting effects of volatile large losses.
Key properties or components
- Increased slightly to 81.8% in 2025 (from 79.1% in 2024).
- Continues to reflect disciplined underwriting and resilience in underlying profitability.
Contradictions or debates
None.