What is the average earnings rate for insurance companies?
Best Answer
You can check the balance sheets of any publicly traded companies at www.sec.gov
Just for the record, they don't make their profits off the premiums they charge - they make their profits, off of the billions of dollars that the government requires them to set aside, to pay claims. They invest that money - mostly in government securities and bonds, and THAT is where the profits come from.
On average, health insurance companies pay out $.99 in claims, for every $1 they take in, in premium. Car insurance companies, if they're LUCKY, pay out about $1.10 in claims for every $1, and homeowners (not counting FL, TX, or LA) claims are about $.85 for every $1 in premium. TX, FL, and LA are running close to $3 in claims for every $1 in premium.
