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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Buy or sell order for security that expires at the end of the trading date on which it was entered if not executed. ...
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Method of accessing capital by the insurance industry in order to hedge against a future catastrophic occurrence. The mechanism works as follows: Primary insurance company AJAX pays a ...
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