expense ratio

  • The percentage of expenses to premiums. For company budgetary purposes, the term expense ratio refers to the ratio of expenses paid to premiums written. Other types of expense ratios are used, such as expenses paid to net premiums written, expenses incurred to premiums earned, expenses paid to premiums earned, etc.

    Internal Revenue Service 1

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).