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underwriting profit

Underwriting profit is the net profit that an insurer derives from providing insurance or reinsurance coverage, exclusive of the income it derives from investments.

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Additional Information

It is calculated by taking the net collected premiums (net of reinsurance premiums) less losses, loss adjustment expenses, and underwriting expenses paid.

Related Terms

Underwriting is the process of determining whether to accept a risk and, if so, what amount of...