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 ?
A ratio below 100% indicates that the company is making underwriting profit, while a ratio above 100% means that it is paying out more money in claims that it is receiving in premiums.
American International Group (AIG) President and CEO Brian Duperreault has insisted that the insurer's General Insurance unit will (https://www.carriermanagement.com/news/2019/05/08/193127.htm) produce an underwriting profit for all of 2019, after a decade of losses.
According to financial results as at end of second quarter on 30th June 2019, the underwriting profit reached AED46 million showing an increase of 27 percent compared to AED36 million for the same period last year.
President and CEO Brian Duperreault has insisted that the insurer's General Insurance unit (https://www.carriermanagement.com/news/2019/05/08/193127.htm) will produce an underwriting profit for all of 2019, after a decade of losses.
Underwriting profit fell from PS171m in the first half of 2018 to PS153m in the first half of 2019.
While top line of the company remained marginally stable, underwriting profit of the company, though declining, supported the bottom line.
General Insurance achieved an underwriting profit driven by underwriting and expense discipline, improved business mix and reinsurance actions.
Claims as a percentage of net premium revenue were registered 38 percent as compared to 36 percent during previous year and the underwriting profit was recorded to Rs.
In 2017, the industry made an underwriting profit of Sh556.18 million, which was, however, the lowest earnings since 2009 except for the years that the firms made a loss.The total after-tax profit in 2018 also fell to Sh6.82 billion compared to Sh11.05 billion, amounting to a 38.28 percent decline.
The firm said that its annual underwriting profit fell for the first time since 2013.
continues to reduce volatility across multiple lines of business, according to Brian Duperreault, company president and chief executive officer, who said AIG intends to achieve an underwriting profit by the end of this year.
The technical profit reached AED 33.5 million showing an increase of 24 % compared to AED 27 and the underwriting profit reached AED 23.5 million showing an increase of 39% compared to AED 17 million for the same period last year.