Retained Earnings
Definition of "Retained earnings"
Net profit of a business, less dividends. Reinvestment of retained earnings enables an insurance company to write more business from a stronger capital base. Contributions to retained earnings come from three sources: excess interest from investment earnings; loss savings (fewer and/or smaller losses than were loaded into premiums); and expense savings (less expense costs than were loaded into premiums).
Popular Insurance Terms
Act passed by Congress in 1991, the purpose of which is to make it easier for consumers to compare deposit accounts among savings institutions (SI). Some of the act's more important ...
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Loading to the burning cost ratio for a reinsurer's expenses, profit, and to build a reserve to meet unusually large claims. ...
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Based on historical loss experience, from which future loss experience is predicted. ...
Termination of coverage in insurance. ...
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