What is Expense Ratio?
In this glossary, Expense Ratio refers to: A financial metric expressing an insurer’s operating expenses as a percentage of net premiums earned, used to assess efficiency.
How is Expense Ratio used in finance?
In finance communication, this term appears in contexts such as: "A low expense ratio indicates that the insurer is managing its administrative costs efficiently relative to premium income."
Why does Expense Ratio matter in finance?
Expense Ratio matters because it supports clear communication in Insurance contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.
Who uses Expense Ratio?
Expense Ratio is mainly used by Financial Analysts, Bankers, and Traders.
What category does Expense Ratio belong to?
In this glossary, Expense Ratio is grouped under Insurance. Related pages in this category explain adjacent procedures, commands and operational concepts.
Where does this definition come from?
This definition is sourced from CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework and published by Protermify Finance as a static finance reference page.