>>Will higher ratio in Q4 matter to those who understand the insurance biz?....
Well yes and a little no. The "combined ratio" is just our "quick math."
In TWK's case, 3Qtr was 1.63 loss ratio. Which means, they are losing a $1.63 for each $1.00 in revenue income. No business can survive if they lose more than they bring in.
In TWK's case, the 1.63 includes the past sins of underreserving. If you use your .25 profit number, that would mean their loss ratio was .955%. Or, the .25 is a 4.5% profit margin (very reasonable, even a little low).