Adjusted Underwriting Profit
What Does Adjusted Underwriting Profit Mean?
Adjusted underwriting profit refers to the financial gain an insurance company derives from premium payments and income from investments, after subtracting expenses for business operations, claims, and benefits paid to policyholders.
Insuranceopedia Explains Adjusted Underwriting Profit
An insurance company generates revenue by underwriting and issuing policies. The money earned directly from insurance underwriting is what remains after the company has paid its policyholders’ claims and covered business-related expenses, such as staff salaries and utilities.
This is why actuarial science is essential in the industry. Actuaries forecast future expenses and calculate the amount that will be required for future claims and benefits. These actuarial projections help guide an insurance company in terms of money and risk management.
Adjusted underwriting profit is also referred to as underwriting gain.
