Premiums Written

Definition

• The total amount of premiums a company has written in a set period of time. This accounting term does not take into account if a premium has yet to be earned, but is instead used to measure the total amount of premiums that policyholders will be required to pay in a given accounting period. Also known as "written premium."

Synonyms
written insurance premium, written premium, insurance premiums written

Related Terms and Acronyms

• Account Current (AC) — Acronym, Very Important,
  • A ledger summarizing the performance of each agent employed by an insurance company.
  ➥ A monthly or yearly ledger style report provided by an insurer to an insurance agent detailing policies, premiums, commissions, cancellations, and endorsements.
• Direct Written Premiums — Definition,
  • All the premiums written by an insurer except those ceded to reinsurers.
• Earned Premium (EP) — Acronym,
  • The amount of premiums that an insurer has collected from an insurance policy at a given time.
• Expense Ratio — Definition,
  • A method of calculating an insurer's operating efficiency.
• Insurance Policy — Definition,
  • A legal contract between an insurer and entity that specifies what the insurer is required to cover and any benefits the insured entity is entitled to.
• Policyholder Dividend Ratio — Definition,
  • A ratio comparing the dividends paid to policyholders to net premiums earned by the insurer.
• Policyholder Surplus — Definition,
  • A method of determining an insurance company's relative financial strength by finding the difference between the company's assets and liabilities.
• Premium — Definition,
  • A payment made to an insurance company for insurance coverage.
• Premium Balances — Definition,
  • A ledger kept by insurance companies recording insurance premiums.
• Premium-to-Surplus Ratio — Definition,
  • A method used to determine an insurance company's financial stability.
• Underwriting (UW) — Acronym, Important,
  • The analysis of risk involved in making a mortgage loan to determine whether the risk is acceptable to the lender. Underwriting involves evaluating the property as outlined in the appraisal report, and also evaluating the borrower's ability and willingness to repay the loan.
  • Assessing individuals for eligibility and issuing and distributing a financial product such as insurance, equity capital or credit.
• Underwriting Income — Definition,
  • The income earned by an insurer from underwriting in a certain amount of time.
• Underwriting Risk — Definition,
  • The total amount of risk an entity takes on from underwriting something.
• Unearned Premium — Definition,
  • Premiums that have not yet been collected from an insurance policy.