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
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Gross yield minus total costs (expenses). ...
Insurance policy sold by nonadmitted insurer. ...
Provision in insurance policies that states the deductible. ...
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Amendment to a will that adds or modifies clauses in that will, such as adding an additional beneficiary or piece of property. ...
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