Underwriting Gain


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Underwriting Gain

The profit an insurance company generates after paying all claims. That is, the underwriting gain is what is left over after the premiums the company collects are added to its investment income and the amount the company pays for claims on its policies is subtracted. An underwriting gain is also called an underwriting profit.
References in periodicals archive ?
9 billion, compared with an underwriting gain of $230 million in 2013.
The cuts in delivery payments will more than offset the RMA proposed underwriting gain in those 16 states designated by USDA as underserved, reducing incentives to write and service producers there.
However, as noted above, final 2007 underwriting results showed a slight underwriting loss rather than the modest underwriting gain that NCCI originally projected.
However, because insurance companies and the government share the underwriting gains/losses asymmetrically by state and certain insurance programs, it is possible that the insurance program as a whole experiences an underwriting loss while the insurance companies experience an underwriting gain.
Logan Re has again played its role with slightly over $50m of gross premiums written at the sidecar, leading to a quarterly underwriting gain of over $28m at a very low combined ratio of only 26.
28, 2014 /PRNewswire/ -- The State Farm property-casualty (P-C) companies reported an underwriting gain of $230 million in 2013 on earned premium of $54.
2 billion underwriting gain for the year compared to a gain of $507 million in 2012.
The underwriting gain and a portion of the surplus gain, however, was reversed by the approximately $20 billion of direct losses from the four large hurricanes.
On an after-tax basis, the underwriting gain in the current quarter approximated the prior year quarter, which included a $100 million benefit from the favorable resolution of prior year tax matters.
Another sign of superior performance is net underwriting gain as a percentage of premiums earned of 3.
The underwriting gain for this group was more than $16.