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
Insurance company's investments in assets other than in companies it controls and/or companies with which it shares common ownership, stocks, and bonds. ...
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Insurance policy for which the required premium has been paid. ...
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