Information about Earned Premium
Earned premium is the portion of an insurance written premium which is considered "earned" by the insurer, based on the part of the policy period that the insurance has been in effect, and during which the insurer has been exposed to loss. For instance, if a 365-day policy with a full premium payment at the beginning of the term has been in effect for 120 days, 120/365 of the premium is considered earned. Conversely, 245/365 of the premium is considered unearned. The calculations differ for policies where premiums are monthly, quarterly, or based on some other schedule besides full initial payment.
Under statutory accounting in the United States, property-casualty insurance companies are required to maintain a reserve for the unearned premiums on their policies. Total earned premium for an accounting period is commonly calculated as written premium for the period, plus the unearned premium at the start of the period, minus the unearned premium at the end of the period. Earned premium is often used in calculating an insurer's "loss ratio", where the numerator is total losses (including claim payments and loss reserves) during a period and the denominator is earned premium for the period.
Under statutory accounting in the United States, property-casualty insurance companies are required to maintain a reserve for the unearned premiums on their policies. Total earned premium for an accounting period is commonly calculated as written premium for the period, plus the unearned premium at the start of the period, minus the unearned premium at the end of the period. Earned premium is often used in calculating an insurer's "loss ratio", where the numerator is total losses (including claim payments and loss reserves) during a period and the denominator is earned premium for the period.
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gross premiums written. Insurance companies often purchase reinsurance to protect themselves against the risk of a loss above a certain threshold; the cost of reinsurance (reinsurance premiums) is deducted from gross premiums written to arrive at net premiums written.
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Accountancy (profession) or accounting (methodology) is the measurement, statement or provision of assurance about financial information primarily used by managers, investors, tax authorities and other decision makers to make resource allocation decisions within companies,
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Motto
"In God We Trust" (since 1956)
"E Pluribus Unum" ("From Many, One"; Latin, traditional)
Anthem
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"In God We Trust" (since 1956)
"E Pluribus Unum" ("From Many, One"; Latin, traditional)
Anthem
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Property insurance provides protection against most risks to property, such as fire, theft and some weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance or boiler insurance.
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Reserves created from shareholders' contributions - the most common examples are:
legal reserve fund - it is required in many legislations and it must be paid as a percentage of share capital
share premium
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legal reserve fund - it is required in many legislations and it must be paid as a percentage of share capital
share premium
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Loss reserving or Claims reserving refers to the calculation of the required reserve for a tranche of general insurance business. Typically, the claims reserves represent the money which should be held by the insurer so as to be able to meet all future claims arising from
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