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 ?
Underwriting profits were BD870,000 compared with BD1.
Theoretical underwriting profits and losses can be determined by the Capital Asset Pricing Model.
The underwriting profit ratio is calculated as a ratio of underwriting profits and earned premium.
The firm said that its operating profits rose 43 percent to GBP523m because of record underwriting profits.
P&C insurers generated underwriting profits in the last two years.
Perhaps they feared some federal lawmaker devising a new windfall underwriting profits tax along the lines of the one Big Oil faces periodically.
R&SA said underwriting profits in the UK fell to pounds 51m in the first half of the year, from pounds 95m in 2006, although it stressed the division maintained strong profitability during the period.
is predicting another year of underwriting profits in 2005, but expects a downturn in 2006, according to a study released by the firm.
Profits are not realized immediately, but over the long-term life of the captive; usually underwriting profits are not returned to policyholders' accounts for 3 to 5 years, minimum.
Data on market growth, premium rate changes, claims costs and underwriting profits.
BNH chief executive Sameer AlWazzan said "the improvement in technical underwriting profits reflect the selective and proactive approach to business and the group's investment performance shows a risk calibrated approach aimed at generating a steady and consistent income".
Underwriting profits in the US property and casualty insurance industry have not been stable for the past several decades.