Kenney ratio
Kenney ratio is a rule of thumb developed by Roger Kenney that sets a 2-to-1 target ratio of gross premiums written to policyholder surplus.
Kenney ratio
Kenney ratio is a rule of thumb developed by Roger Kenney that sets a 2-to-1 target ratio of gross premiums written to policyholder surplus.
Additional Information
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.
