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
insurance underwriting income, policy 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.
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