Developed to Net Premiums Earned

Definition

  • A ratio used by insurance companies to determine if the insurance premiums they charge are properly balanced with the benefits and expenses they pay out to clients.

Synonyms
insurance earnings ratio

Related Terms and Acronyms

  • Expense Ratio Definition,
    • A method of calculating an insurer's operating efficiency.
  • Net Premium Definition,
    • The total earned by an insurer in insurance premiums, less the agent's commissions.
  • Premium Definition,
    • A payment made to an insurance company for insurance coverage.
  • Premium-to-Surplus Ratio Definition,
    • A method used to determine an insurance company's financial stability.
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