Premiums Earned



Related Articles


Premiums Earned, also reported as Revenue from Premiums measures the total amount of premiums that the insurance company considers to be "earned" because the insured has not claimed losses within a specified time.

This metric is calculated by multiplying the original premium value by the percentage of time that the policy has been in effect without having a claim filed. For example, if a $1,000 policy (premium) has a 2 year life span and no claim has been filed 1 year into the policy, the premium earned equals $500 ($1,000 x (1/2)).

This metric is distinct from Premiums Written in that when an insurance policy is written (IE a customer signs up) the premiums may be used to pay losses incurred.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki