Underwriting Expenses

Underwriting Expenses

The expenses associated with running an insurance agency. Underwriting expenses include salaries and commissions for agents, travel, training sessions, rent on offices and so forth. Underwriting expenses do not include taxes.
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As a result of this consultation, the quarterly publication now contains an additional 25 general insurance statistics, including statistics based on the recently revised capital reporting framework and statistics at the class of business level, such as a split of net incurred claims , number of risks and components of total underwriting expenses .
Furthermore, the adoption of a new accounting standard, which accelerates when certain underwriting costs are recognized in earnings, increased underwriting expenses.
risks, without reduction for underwriting expenses.
Expense Ratio: Ratio of underwriting expenses (including commissions) to net premiums written.
Components of the expense include the fronting fees to an issuing insurer, reinsurance (specific and aggregate), captive management fees, underwriting expenses, actuarial services, claims handling, taxes and loss-control services.
The company's shares will raise more than $129 million after underwriting expenses and commissions.
Underwriting income for 2011 decreased because of increases in loss- and loss-adjustment expenses (LAE) incurred ($318 million, or 6%) and underwriting expenses incurred ($129 million, or 8%), partially offset by a decrease in dividends to policyholder/owners of $129 million, or 29%, and an increase in net earned premiums of $59 million, or 1%.
Many critical assumptions underlie rate changes--assumptions such as loss development factors, loss cost trends, factors to convert historical premiums to current premiums, projected investment income, and assumed underwriting expenses.
5, Liabilities, Contingencies and Impairments of Assets, and reported as other underwriting expenses for a property and casualty company and general expenses for a life insurance company.
The deterioration in the company's underwriting results was driven by premium volume declining at a faster rate relative to the decline in underwriting expenses, as well as increases in incurred losses.
Represents net premiums earned less loss and loss adjustment expenses and commission, brokerage and other underwriting expenses, all as determined in accordance with GAAP, and does not include net investment income, net realized capital gains, other-than-temporary impairment losses, other income or other expenses.