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Underwriting Income

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Underwriting income
For an insurance company, the difference between the premiums earned and the costs of settling claims.
Underwriting Income
In insurance, the profits generated from premiums in relation to the cost of settling claims. Underwriting income is the revenue generated by premiums on the insurance policies the company offers, less the cost of settling claims. For example, if a company generates $10,000,000 in revenue from premiums and spends $6,000,000 settling claims, its underwriting income is $4,000,000. See also: Loss ratio.


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