Adjusted Underwriting Profit

(redirected from Underwriting Gains)

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 ?
The bad news is that rising claims ate up more premium revenue, squeezing underwriting gains.
The data on underwriting gains and losses, investment income, loss ratio, underwriting expense ratio, combined ratio, net premiums written, unearned premium reserves, and loss reserves were gathered from the Best's Aggregates and Averages--Property and Casualty.
Performance improvement is coming through strongly, driven by underwriting gains and cost re-engineering.
Issuers continued to have a much easier time making money in both the small-group market and the large-group market, but the percentage that generated group health underwriting gains was smaller in 2014 than in 2013.
1% in first quarter of 2014, and 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.
The federal government subsidizes the insurance premiums paid by farmers, reimburses some of the administrative and operating costs for private insurers participating in the program, and shares in the underwriting gains as well as losses of the program as outlined in the standard reinsurance agreement, Dodd said.
Recent underwriting gains have been driven by the company's focused underwriting strategy, extensive risk management programme, geographic diversification, significant reduction in claims frequency since 2004 and consistent pattern of establishing solid loss reserves, the agency added.
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.
However, a majority of companies turned in data that also showed they had underwriting losses in the previous year: 81 companies reported underwriting gains, while 100 companies posted underwriting losses.
But according to a recent Guy Carpenter report, reinsurers have used the market turnaround and underwriting gains to regain at least $4.