What Does Kenney Ratio Mean?

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What does Kenney Ratio mean? Read on to discover the definition & meaning of the term Kenney Ratio - to help you better understand the language used in insurance policies.

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.

We hope the you have a better understanding of the meaning of Kenney Ratio.

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