Adjusted Underwriting Profit

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Adjusted Underwriting Profit

The profit an insurance company realizes over a given period of time. It is calculated by taking the premiums it receives and the capital gains on the investments it makes with those premiums, and subtracting the company's overhead plus what it pays out in claims on its policies.
References in periodicals archive ?
Despite rate reductions and low investment returns, commercial lines insurance is on track for positive underwriting gains in 2016.
1% in first quarter of 2014, and their net underwriting gains increased from $2.
The updated weather-based models, which were released Tuesday, estimate underwriting gains and losses based on crop yield probabilities in the context of current conditions, notes a statement from AIR Worldwide.
Underwriting Results Underwriting gains (or losses) equal earned premiums minus loss and loss adjustment expenses (LLAE), other underwriting expenses, and dividends to policyholders.
Excessive cuts in payments to deliver the program and in underwriting gains will reduce insurer returns and incentives to maintain investments in the industry to adequately service all producers.
But according to a recent Guy Carpenter report, reinsurers have used the market turnaround and underwriting gains to regain at least $4.
At the same time, investment income is falling and underwriting gains could be affected by soft market conditions.
2) There are a number of interesting features: (1) producer subsidies increased dramatically in 1995 (a result of the 1994 Federal Crop Insurance Act) and again in 2001 (a result of the 2000 Agricultural Risk Protection Act (ARPA)), (2) indemnities less premiums are quite volatile, (3) insurance companies' administrative and operating expenses have risen with increases in total premiums, and (4) underwriting gains accruing to insurance companies have increased dramatically since 1994.
This nonlife insurance company had two income sources: investment income and underwriting gains.
Sterling's solid capital position has been derived from a double-digit compound average annual growth in surplus over the latest five-year period, driven by net underwriting gains in each of the last five years, supplemented by generally steady net investment and other income.
Insurers benefitted from a combination of premium growth and lower losses, resulting in net underwriting gains of $2.
Sterling s solid capital position has been derived from a double-digit compound average annual growth in surplus over the latest five-year period, driven by net underwriting gains in each of the last five years, supplemented by generally steady net investment and other income.