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.
