Cash Flow Underwriting

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Dictionary Says

Definition of 'Cash Flow Underwriting'

A pricing tool used by insurance companies. Cash flow underwriting occurs when a given insurance product is priced below the rate of premium required to take into account the cost of expected losses that will be incurred. The purpose of this strategy is to generate substantial investment capital from the increased business that will come from the lower pricing.
Investopedia Says

Investopedia explains 'Cash Flow Underwriting'

The investment capital that is presumably generated by the sales from the lower-priced product can be used to invest in vehicles that will pay higher rates of return. If a smaller amount were invested, then a less advantageous investment may have to be used instead. Ultimately, the higher investment returns make up for the difference in pricing for the insurer.
Search results for

'Cash Flow Underwriting'

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    ... focus on underwriting marine insurance in the US, UK, Belgium and Sweden. The company
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    ... more interested in paying for more advanced analytics to fuel their underwriting
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    ... this strategy are to increase cash flow and assets ... also helps free up cash that you ...
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    ... 6.18 Revenue Recognition Effects on Cash Flows and Financial Ratios; 6.19
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    ... Others, like Morningstar, prefer to use a discounted-cash-flow model to arrive at
    an ... If it's just to cash out, then forget it. ... Who is underwriting the IPO? ...

  • Investing In Health Insurance Companies

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    ... Individuals are generally considered undependable sources of cash flow as well. ... that
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    ... are issued to smooth out a city's cash flow between tax ... Flow of Funds, The priority
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    http://www.investopedia.com/exam-guide/cfa-level-1/ethics-standards/standard-independence-objectivity.asp
    ... 6.18 Revenue Recognition Effects on Cash Flows and Financial Ratios; 6.19
    The Cash Flow Statement; 6.20 Cash Flow Statement Basics; ...

  • How To Spot A Predatory Lender - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0112/How-To-Spot-A-Predatory-Lender.aspx
    ... Although underwriting practices have tightened and government regulations for mortgage
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