Underwriting Income

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Dictionary Says

Definition of 'Underwriting Income '

Profit generated by an insurer's underwriting activity over a period of time. Underwriting income is the difference between premiums collected on insurance policies by the insurer, and expenses incurred and claims paid out. Huge claims and disproportionate expenses may result in an underwriting loss, rather than income, for the insurer. The level of underwriting income is an accurate measure of the efficiency of an insurer's underwriting activities.
Investopedia Says

Investopedia explains 'Underwriting Income '

For example, if an insurer collects $50 million in insurance premiums over a year, and spends $40 million in insurance claims and associated expenses, its underwriting income is $10 million.

An insurer's underwriting income may fluctuate from quarter to quarter, with natural and other disasters such as earthquakes, hurricanes and fires leading to huge underwriting losses. Hurricane Katrina, the largest natural catastrophe in US history, caused an underwriting loss of $2.8 billion for the US property/casualty insurance industry in the first nine months of 2005, compared with underwriting income of $3.4 billion in the corresponding period of 2004.

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Search results for

'Underwriting Income '

  • Aspen Insurance Is Undervalued

    http://stocks.investopedia.com/stock-analysis/2011/Discount-Unwarranted-At-Aspen-Insurance-AHL-TRV-BRK.A-BRK.B-ACE0105.aspx
    ... million. Underwriting income fell significantly, dropping 72.6% to $25.3
    million, but tends to fluctuate from quarter to quarter. ...

  • Smoother Sailing Seen For Ace Limited

    http://stocks.investopedia.com/stock-analysis/2010/Smoother-Sailing-Seen-For-Ace-Limited-ACE-TRV-BRK.A-ALL-HIG0409.aspx
    ... single digits. Underwriting income improved nearly 7% to $373 million, though
    net investment income fell slightly. However, realized ...

  • The Buffett Stock You Should Be Buying

    http://stocks.investopedia.com/stock-analysis/2009/The-Buffett-Stock-You-Should-Be-Buying-BRK.A-KO-WSC-NKE-COST-UNH-TMK0513.aspx
    ... Over the last 10 years, Torchmark has grown underwriting income 8.7% annually
    and excess investment income 10.3% annually. Not too shabby. ...

  • Property And Casualty Having Better Year

    http://stocks.investopedia.com/stock-analysis/2010/Property-And-Casualty-Having-Better-Year-HIG-TRV-CB-AIG1230.aspx
    ... by net investment gains, including both higher net investment income and realized ...
    Underwriting Losses The industry turned in higher losses from underwriting ...

  • Series 6 Study Guide - Marketing and Sales Presentations - Issuing ...

    http://www.investopedia.com/exam-guide/finra-series-6/marketing-presentations/issuing-underwriting.asp
    ... 7.2 Federal Income Tax Regulations; 7.3 Tax Consequences of the Investment ... 9.1
    Introduction; 9.2 The Prospectus; 9.3 Issuing and Underwriting; 9.4 Regulation A, ...

  • CFA Question of the Week 23/08/2005 | Investopedia

    http://www.investopedia.com/professionals/questionoftheweek/cfa/230805.asp
    ... IV. Income from underwriting activities are fully taxable. a) I, II, and
    III only b) III only c) II and IV only d) I and III only. ...

  • The 5% Solution To Financial Freedom

    http://www.investopedia.com/articles/pf/08/5-percent-income-savings.asp
    ... (To learn more about underwriting, see Is Insurance Underwriting Right For ... qualify
    for a tax credit, not just a deduction, for those under certain income limits ...

  • Series 6 Study Guide - Taxation Issues - Federal Income Tax ...

    http://www.investopedia.com/exam-guide/finra-series-6/taxation-issues/federal-income-tax-regulations.asp
    ... 7.2 Federal Income Tax Regulations; 7.3 Tax Consequences of the Investment ... 9.1
    Introduction; 9.2 The Prospectus; 9.3 Issuing and Underwriting; 9.4 Regulation A, ...

  • Is Insurance Underwriting Right For You?

    http://www.investopedia.com/articles/financialcareers/08/insurance-underwriting.asp
    Is Insurance Underwriting Right For You? ... Evening and weekend hours are not uncommon.
    Working with computers and technology is a vital part of underwriting. ...

  • Investing In Health Insurance Companies

    http://www.investopedia.com/articles/stocks/09/investing-in-health-insurance.asp
    ... service products provide the opportunity for health insurers to demonstrate their
    skill level in underwriting and actuarial ... Figure 1: Sample Income Statement ...

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