It is proposed that this article be deleted because of the following concern:
If you can address this concern by improving, copyediting, sourcing, renaming, or merging the page, please edit this page and do so. You may remove this message if you improve the article or otherwise object to deletion for any reason. Although not required, you are encouraged to explain why you object to the deletion, either in your edit summary or on the talk page. If this template is removed, do not replace it . The article may be deleted if this message remains in place for seven days, i.e., after 21:13, 15 June 2025 (UTC). Find sources: "Underwriting profit" – news · newspapers · books · scholar · JSTOR Nominator: Please consider notifying the author/project: {{ subst:proposed deletion notify |Underwriting profit|concern=Tagged as Unreferenced and unimproved for 15 and 1/2 years. This term hasn't been used widely in the literature since the mid-20th century.}} ~~~~ |
Underwriting profit is a term used in the insurance industry. It consists of the earned premium remaining after losses have been paid and administrative expenses have been deducted. It does not include any investment income earned on held premiums.
For example, an auto insurer collects money every month from its customers in the form of a premium. Should a customer have a covered auto accident, the company pays out a claim. In the time between the receipt of each premium payment and the paying of the claim, the money received by the insurer can be invested. Returns from investments are the primary source of profits for an insurance company. If the amount of premiums taken in is greater than the claims paid out, even before taking into account investment returns, the excess additional profit is called "underwriting profit". Another prime example occurs when using Insured Profits.