Underwriting income

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.
References in periodicals archive ?
5 million, with net underwriting income up 18 per cent to Dh45 million, the firm told shareholders at its AGM on Wednesday.
Dubai National Insurance & Reinsurance PSC (DNIR) held its Annual General Meeting today, where Khalaf Ahmad Al Habtoor, Chairman of the Board of Directors, announced the company achieved its highest ever gross written premiums and net underwriting income.
For the year, we established a new underwriting income record despite an extraordinary level of industry-wide catastrophic events, relatively weak overall commercial lines pricing, and continued low interest rates," said Gregory E.
The firm also said that underwriting income dropped by 34 percent.
4m net decrease in underwriting income resulting from unfavourable development on prior years' loss reserves.
Commenting on the results, Shaikh Mohamed bin Saif Al Nahyan, chairman of Adnic, said: "Adnic has started the year on a strong note with growth in net underwriting income and an overall net profit, driven by corrective measures implemented by the management of the company over the past year.
While insurers have responded to the prolonged challenging investment environment with a greater focus on underwriting results, Marshall points out that, in 2015, net investment income was still over $47 billion while underwriting income was over $6 billion.
Underwriting income of IGIIL surged by 97% to Rs76mn in 3Q2015 led by improving macros and improved fire segment business.
Insurance underwriting income (net of reinsurance) decreased by 12.
It has recorded a net underwriting income and an overall net income in four of the past five years.
The outlook revision is due to the insurer's negative underwriting income over the past years, due to heavy weather-related losses and a high expense ratio.
boosted its profits by more than $80 million during the second quarter of 2010 despite a drop in gross premiums written and underwriting income.