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Soft magnetic materials play an important role in broad applications, such as transformers and electrical motors. There is an interest in Soft magnetic composites (SMC) materials because of the demand for miniaturization of cores for power electronic applications, transformers, stators and rotors of electromotors. Soft magnetic composites, which are used in electromagnetic applications, can be described as ferromagnetic powder particles surrounded by an electrical insulating film. The Fe73Cu1Nb3Si16B7 ferromagnetic material is well-known for its excellent soft magnetic properties. Permeability in permeability spectra of iron composite sample is higher than for the iron + Fe73Cu1Nb3Si16B7 composite samples at low frequencies. On the other hand the permeability remains steady up to higher frequencies with an increase of the Fe73Cu1Nb3Si16B7 content and at certain frequency larger than for iron composite. Similar behavior was obtained for imaginary parts of permeability. The Somaloy + Fe73Cu1Nb3Si16B7 composite exhibit a lower magnetic loss than Somaloy composite caused by the lower contribution of eddy current loss.