Net premiums written generally reflects written premiums after relevant reinsurance adjustments.
The distinction that matters
Written premium is not the same as earned premium, cash received or profit, and reporting definitions must be checked.
What to check
- Read the reporting definition.
- Separate gross and net figures.
- Compare consistent periods and business classes.
Example to discuss
A growing insurer writes more annual policies late in the year, increasing written premium before all the associated cover has been earned.
This is a hypothetical comparison, not a customer claim or a determination of cover.
Jurisdiction and scope
Use the definition in the report being analysed. Changes in business mix, reinsurance, estimation and reporting methods can affect interpretation. These measures do not determine whether an individual claim is covered.
Sources and further reading
General information only. The policy, schedule and applicable rules determine the actual position. For a personal decision, use an appropriately qualified adviser or the relevant provider.