Definition

Underwriting income

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The proceeds earned on the insurance policies the company offers to an insurer after excluding the expenses incurred and claims settled out. For instance, if a firm generates a revenue amounting to $60,000,000 from premiums and consumes $15,000,000 paying out claims, its underwriting income would be $45,000,000. Underwriting income level determines the exact measure of the efficacy of an insurer's underwriting actions.