Explanation for Percentage Difference

[business7642]

See attached company expense percentage situation. Co1 & Co2 have expenses based on insurance premium dollars. Each company has a different expense rate. The Expense as % of Premium is the same for each region (within the same co). However, when you combine the companies the Expense as a % of Premium is not the same for each region. Any explanations on this?

 

[business7642]

Pasted Scenario

Why isn't the combined % of Prem the same for both regions?

	PREMIUM CO 1	EXP RATE	EXPENSE	% of Prem
Region1	9,036,706.99	0.7	6,325,694.89	70.0%
Region2	3,716,867.58	0.7	2,601,807.31	70.0%
	PREMIUM CO 2	EXP RATE	EXPENSE	% of Prem
Region1	4,832,640.25	0.08	386,611.22	8.0%
Region2	2,966,510.48	0.08	237,320.84	8.0%
	COMBINED CO	EXP RATE	EXPENSE	% of Prem
Region1	13,869,347.24		6,712,306.11	48.40%
Region2	6,683,378.06		2,839,128.14	42.48%