loss ratio

loss ratio definition - business

loss ratio

  1. In insurance, the ratio of claims paid to premiums received. A loss ratio of 1.25 results from paying $500,000 in claims while receiving only $400,000 in premiums.
  2. In lending, the proportion of nonperforming loans in a loan portfolio.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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