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Kenney Ratio

Kenney Ratio


Kenney Ratio — a rule of thumb developed by Roger Kenney that sets a 2-to-1 target ratio of gross premiums written to policyholder surplus. This applies to insurers that write strictly property insurance. For companies that also write liability insurance, the ratio is 3 to 1. Such ratios provide a measure of an insurer's financial stability and solvency.

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