The Net Income Ratio measures how effective your organization is at generating profit on each dollar of earned premium. This KPI is used to measure the profitability of your organization and is primarily used for internal comparison. If you have established industry benchmarks and strong knowledge of your competitors, this KPI can also be used to compare your business to others in the same space. This insurance KPI can be used to gauge future pricing policies. See also: Financial KPIs and Ratios.
Net Income / Earned Premium