PORTFOLIO PROFITABILITY
Turning actuarial analysis into portfolio profitability.
- THE OPPORTUNITY
- When I took over the portfolio, it was operating at a 120% loss ratio. Across-the-board rate action would have pushed out good risks along with bad — shrinking the book without fixing the underlying problem.
- The diagnosis
- The problem wasn’t simply inadequate pricing. Portfolio mix, underwriting and reinsurance were contributing materially. The segments that could be earned out were indistinguishable, at the portfolio level, from those that should be starved. It was a portfolio problem, not only a pricing problem — and that reframing changed every subsequent decision.
- The intervention
- Pricing
- Underwriting
- Portfolio management
- Reinsurance
- The result
120% → 65%
18-month transformation