COR/UW Income
Can you clarify this comment in the wiki: "Note that Liberty's U/W income on line 8 is negative 807 million, which means their COR must be over 100%." Is combined operating ratio equivalent to combined ratio, or overall operating ratio? I assume combined ratio since I don't think we could deduce the overall operating ratio without also knowing investment income. On exam, does COR refer to combined ratio?
Comments
Combined Ratio is (loss + underwriting expense) / premium. Operating Ratio also includes investment income in the numerator.
I am told that "Combined Operating Ratio" is a Canadian term for Combined Ratio. I don't think you'll encounter COR in the 6U exam.