Direct Premiums Written

What Does Direct Premiums Written Mean?

Direct premiums written refers to the total amount of premiums an insurance company writes during a given year, without factoring in the amount ceded to reinsurance. This figure can include policies written by affiliated companies, but it does not include premiums earned from the company’s role as a reinsurer.

Insuranceopedia Explains Direct Premiums Written

Direct premiums written represent an insurance company’s growth over a specified period. While increased premiums contribute to higher revenue, new policies are the primary driver of growth.