GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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50% - Moderately

Underwriting Income


Synonyms:income from underwriting, insurance underwriting income, policy underwriting income
Filed Under: financial-banking, insurance, investments, mortgages
Tags: banking, insurance, investment, mortgage
 

Definition of underwriting income

underwriting income
1. Income earned from underwriting activity over a period of time by an insurance company. Underwriting income is determined by subtracting paid claims and expenses incurred from premiums collected on insurance policies, which does not always net a positive and in some cases can end in a loss for the insurer.

Related Terms and Acronyms:

  • earned premium (EP)   The amount of premiums that an insurer has collected from an insurance policy at a given time.
  • expense ratio   A method of calculating an insurer's operating efficiency.
  • loss adjustment expenses (LAE)   Expenses incurred by loss adjusters when they investigate and settle claims.
  • loss control   The combined efforts undertaken by both the insurer and the insured to lower the risk, frequency and extent of potential losses.
  • losses incurred   The total net losses of an entity in a year.
  • policyholder dividend ratio   A ratio comparing the dividends paid to policyholders to net premiums earned by the insurer.
  • policyholder surplus   A method of determining an insurance company's relative financial strength by finding the difference between the company's assets and liabilities.
  • premium balances   A ledger kept by insurance companies recording insurance premiums.
  • premiums written   A sum of the premiums from all the policies that a company has written in a given period of time.
  • underwriting guide   The rules and guidelines an underwriter must follow while writing policies.

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