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
Paid loss experience for the period of time from January 1 to December 31 of a specified year (not necessarily the current year). ...
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Qualified retirement plan under the internal revenue code Section 457 for employees of the states and political subdivisions within the states. ...
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Interest rate credited on three-month United States Treasury bills. ...
Unexpected, unforeseen event not under the control of the insured that results in bodily injury. ...
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