Underwriting Income
Definition
- Income earned from underwriting activity over a period of time by an insurance company. Underwriting income is determined by subtracting paid claims and expenses incurred from premiums collected on insurance policies, which does not always net a positive and in some cases can end in a loss for the insurer.
Synonyms
policy underwriting income, insurance underwriting income, income from underwriting
Related Terms and Acronyms
- Earned Premium (EP) — Acronym,
- The amount of premiums that an insurer has collected from an insurance policy at a given time.
- Expense Ratio — Definition,
- A method of calculating an insurer's operating efficiency.
- Loss Adjustment Expenses (LAE) — Acronym,
- Expenses incurred by loss adjusters when they investigate and settle claims.
- Loss Control — Definition,
- The combined efforts undertaken by both the insurer and the insured to lower the risk, frequency and extent of potential losses.
- Losses Incurred — Definition,
- The total net losses of an entity in a year.
- Policyholder Dividend Ratio — Definition,
- A ratio comparing the dividends paid to policyholders to net premiums earned by the insurer.
- Policyholder Surplus — Definition,
- A method of determining an insurance company's relative financial strength by finding the difference between the company's assets and liabilities.
- Premium Balances — Definition,
- A ledger kept by insurance companies recording insurance premiums.
- Premiums Written — Definition,
- A sum of the premiums from all the policies that a company has written in a given period of time.
- Underwriting Guide — Definition,
- The rules and guidelines an underwriter must follow while writing policies.
